Mortgage Broker vs LenderHypothekenmakler vs. Lender
Hypothekenmakler vs. loan officer: What is the difference?
Often, home buyers do not see the distinction between a mortgage broker and a credit advisor. While a credit counselor works directly for a lender, a broker is an independant entity that works for no one. This way a broker can select credits from many different creditors.
Exactly what is a credit clerk? Credit advisors work directly for a local banking institution or other lender; therefore, credit advisors often consider the best interests of their employers, not the home buyer. There is no obligation for a credit clerk to have a licence to work in the mortgage business. Mortgage broker? What is a mortgage broker?
On the other side a mortgage broker has to be licenced. You are an independant labourer who functions as an "intermediary" between the home buyer and the lender. Hypothekenmakler are for house buyers with bad creditworthiness or those, which want to bargain the best conditions for their loans, recommend. Hypothecary agents do not receive payments unless they take out a mortgage; therefore they will work hard to grant a satisfying mortgage to the debtor.
Shall I work with a credit clerk or mortgage broker? An advantage of working with a credit consultant is that there is no "middleman". Frequently, this leads to a faster credit processing because there is no need for additional sources for documentation. However, mortgage intermediaries can offer more mortgage option for borrower as they are not linked to a lender.
Hypothekenmakler vs. direct lender
Mortgage brokers work with several creditors and try to choose the cheapest interest rates for the borrowers. As a rule, the broker is indemnified by the lender after you have closed the plot. Straight line creditors have a pooled of resources from their investors, shareholders or bondholders and lend the resources directly to the borrowers.
Advantages of straight creditors are that the mortgage origination will be a less unit size involvement, and in less theoretical terms opportunity for trouble or question. Disadvantages of straight creditors are that they can be less adaptable in granting your mortgage, and you could be refused a mortgage. Advantages of mortgage brokerage are that you can get a better interest rates, and bigger brokerage firms can even provide incentive schemes such as lower acquisition cost or smaller down payment.
Disadvantages of mortgage brokerage involve the potential for communication between the broker and the last lender as they are faced with many different creditors at the same aime. One possible problem with a broker could be to lose a block on an interest quote because the real lender's policy had just before the block change and the broker was not informed.
A further reflection is the role of locals vs. nationals as creditors or agents. For example, a foreign broker or lender may not find an expert during the fixed-interest term and you may loose your proposed interest rates (so you may need to restart the procedure and submit up-to-date documentation).