The Difference Between A Bank, a Mortgage Broker, & a Mortgage Banker
You basically have 3 choices when getting a mortgage. You can go to a bank or credit union, you can go to a Mortgage Broker, or you can go to a Mortgage Bank which is what I work for.
When you go to a bank or credit union you are only have access to their products. Also, since they tend to be larger you the mortgage professional doesn’t get to know their underwriter because they have no idea which underwriter will get the file and it might not be underwritten locally. They do fund the loan with their own monies.
A Mortgage Broker has access to different products but they lose the control when it comes to underwriting and getting someone with authority to prioritize and get the loan done. If a mortgage broker sends a loan to Wells Fargo and Wells Fargo denies it the mortgage professional looks bad, not Wells, so there isn’t as much of a vested interest in the deal. They don’t fund the loan, the bank underwriting like in this case Wells Fargo does.
A Mortgage Banker, like myself, has access to the different products including our own and we keep the control of the file because we underwrite in house and locally. They do fund the loan with their own monies.
Keeping control of the file and underwriting it locally is so important in Fort Lauderdale and South Florida because our market is so unique.