Learn the differences between mortgage brokers and loan advisors
Both mortgage brokers and loan advisors can help you find competitive interest rates and loan terms when you are looking to buy a home. Both are licensed professionals who meet the standards of the states in which they are licensed to work. And both should provide good customer service, respond to your questions and requests promptly, earn your trust, and earn your business.
One difference between mortgage brokers and loan advisors is that mortgage brokers work with a network of lenders to help find you a mortgage while loan advisors work directly for the lender. Which is a better fit for your needs? Take a look at these comparisons.
Potential advantages of working with a mortgage broker
- You can save time on mortgage research. Experienced brokers can save you time when shopping for a mortgage as mortgage brokers have access to loan products offered by more than one lender and may be able to help you find more quickly mortgages that fit your financial circumstances.
- You can save time on mortgage applications. Mortgage brokers can help you collect and organize the documents you need to apply for a mortgage. Mortgage brokers may use this information to help compare rates and products to determine the appropriate mortgage to fit your needs.
- Help with harder mortgage applications. Brokers have access to several different lenders which may have more flexible requirements for borrowers with less than perfect credit scores, less money for a down payment, or other financial challenges.
- Access to wholesale mortgages. Mortgage brokers might have access to specific mortgage companies (Wholesale lenders) which only work with mortgage brokers, so you may get access to certain mortgage options that loan advisors can’t offer.
Potential advantages of working with a mortgage advisor
- Simple loans might be less expensive. If you have a good credit score and solid finances, you may be better off working directly with lenders in a less complex transaction.
- Ability to speak directly with the lender. When you work directly with a loan advisor, you have the ability to communicate directly with the lender responsible for processing, underwriting and closing your loan.
- Specializing in certain loan types. Some lenders specialize in different kinds of loans. At Freedom Mortgage, we are committed to all our customers and we are especially proud to help Veterans buy homes with VA loans and we’re especially experienced in Federal Housing Administration (FHA) loans.
- On-going customer service. Many times the lenders who approve your mortgage will service the loan after it closes, including processing your payments and answering your questions.
Can a mortgage broker or a mortgage advisor save you more money?
The answer to this question depends on your unique financial needs and circumstances. Before deciding, you should analyze your financial situation and compare rates and product offerings from both mortgage brokers and loan advisors to reach an informed decision.
Real estate professionals often recommend that people shop around for a few mortgages on their own even when they are working with a mortgage broker. This can give you more confidence in the choices your broker offers. Our Loan Advisors will be happy to discuss the mortgage and refinancing choices that may be available to you through Freedom Mortgage. Call us today at 877-220-5533.