What Is the Difference Between a Mortgage Banker and a Mortgage Broker? 

A mortgage banker is an employee of a bank who has been moved into mortgage lending. A bank will usually have a mortgage loan officer available in order to provide this service to their customers. A mortgage employee is assigned a nationwide mortgage licensing number, but does not have to pass a licensing test for their number. A mortgage banker is not required by law to disclose the amount of money they will be making by closing your loan. Mortgage bankers typically fund the loan with their own money and then sell the loan to an investor after the loan closes.

A mortgage broker is required to obtain licensing through the Nationwide Mortgage Licensing System by taking a very strict exam testing them in their knowledge of the mortgage loan process and regulations. They are also required to renew this license every year by providing proof they have had the minimum of eight hours of continuing education and a yearly renewal exam. The mortgage broker is required by law to disclose the exact amount they will make on your loan along with the exact credit you will receive when you lock in your interest rate. Mortgage brokers typically fund the loan through the investor’s money and have access to a wide array of investors.

This is beneficial in getting a loan approved since a mortgage broker has several companies’ underwriters to use as a resource instead of just one or two as typically seen in a mortgage banker situation.

What Is a Pre-Qualification?

A pre-qualification is usually required before you put a contract in to purchase a home. This assures the seller that you have been to a mortgage broker and your income and credit have been evaluated to make sure you qualify for a mortgage loan to purchase their home. Please call us at (325) 795-1000 to set up an appointment to get pre-qualified for a mortgage. We do not charge for a pre-qualification consultation except for the actual cost of pulling your credit. This is usually the first step in buying a home and in doing this you are under no obligation to secure a mortgage loan.

Can You Help Me if I Have Had Some Credit Problems?

During the pre-qualification process, we evaluate your credit as soon as possible to make sure your credit score will not prevent you from obtaining a mortgage loan. Every borrower’s credit history is different and we will let you know your finance options based on your credit history.

What Affects the Mortgage Interest Rates?

Several different factors influence the mortgage rates such as the Federal Reserve Rate, the economy, world politics and foreign markets. Rates are subject to change daily depending on market conditions. Rates can change during the day depending on breaking market news. Please keep in mind that an interest rate cannot be locked in or secured for you until you are under contract to purchase a home.

Why Should I Use Love & Love Mortgage Inc.?

Love & Love Mortgage is locally owned by Chris and Linda Love. We have a combined 47 years of mortgage loan experience in the Abilene area. Customer satisfaction is our number one priority. We also have a good relationship with the local REALTOR® community. We value your trust in us and will work hard to make the mortgage process a pleasant one. We are just a phone call away to answer any of your questions. Our goal is for you to refer your friends and family to us after you close and to use our services again if the need arises. We want you as our customers and friends.
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