Shopping for mortgages in Jacksonville, as in other cities around the country, can be both exhausting and overwhelming – especially if you’re a first time buyer. It can be difficult to understand all of the financial and legal terminology, and it can be even harder to know whether the lender really has your best interest in mind.
On top of all of that, you will need to decide whether to choose a mortgage lender or a mortgage broker. Before you can make a decision, you need to understand the difference between the two.
A mortgage lender works for one financial institution. If you need a mortgage, you would likely start your search by going to the bank that you do your day-to-day banking with, like Chase, for example. The mortgage specialist works with that one bank or financial institution to bring you a mortgage offer.
This offer is based on criteria that are used by that particular bank; for example, interest rate, terms, etc. Potentially, you could get turned down by one lender, but accepted by the next one you go to. This means, though, that you have to go to each lender, one by one, until you get approved. Each time, you will have to go through the entire application process, including having your credit rating checked. Be careful, though – this can actually lower your credit score.
A mortgage broker is a specialist that works with many different lenders. When you work with a mortgage broker, they will take care of all of your information, including checking your credit rating, and they will connect with their lenders to find the best deal for you. As a consumer, a broker can be much easier, because you have a single point of contact; the broker does all of the legwork for you. They can also ‘influence’ the lenders to give you a mortgage when they otherwise might not be willing to.
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