LIMCA - Long Island Comparative Market Analysis

I should try to explain the difference between mortgage brokers and mortgage bankers in general, rather than speaking of individual loan officers. Briefly, mortgage brokers act as middlemen and submit loan packages for approval to various lenders, which may include private investors, mortgage bankers, savings banks, commercial banks or other institutional lenders. A mortgage broker does not service the actual loan, but rather searches out the programs offered by various mortgage lenders and then submits packages for underwriting, approval, documents and funding.

Some Mortgage bankers are "direct lenders" that actually fund the loans. Mortgage banks are usually FannieMae, FreddieMac, FHA and/or VA approved lenders, and often are approved through other conduits such as major banks where they may choose to sell the loans after closing.

Each will argue the advantages of dealing with them, and you must come to your own conclusion. A personal referral from a friend or associate might be the best course of action when you choose your lender, but remember that your Prequalification or Preapproval does NOT lock you into any bank or lender. There is still time to shop around for the best rate and terms. Beware of unscrupulous bankers who will not disclose fees in writing at the time of application, or who approve youfor much more than you can afford. A skilled Realtor® can help you understand the process. Do not be afraid to ask.