first time home buyer, is a broker easier than dealing with a lender?

Banks, brokers, and mortgage lenders will all get you financing. Each has positives and negative. A bank offers only it's own products - severely limiting your options, but many times they can offer some of the more risky and fringe products that others won't because they sometime will use their own money versus selling to Fannie/Freddie, etc. Bank loan officers, and loan officers who work at mortgage companies owned by a bank also do not have any state or federal education or licensing requirements. Most often you are working with more of a clerk than a professional. Brokers, and their bigger cousin (correspondent / or direct lenders) can shop your file around to multiple lenders, giving you the biggest variety of both products, options, and interest rates. As another benefit, at non-bank lenders, all the loan officers must have passed MANDATED federal and state licensing, pre-license education, continuing education, background checks, etc. More often than not, you are working with a professional, not a clerk. Use who you want... most people will be just fine. But, when doing what is likely the largest financial transaction of the average persons life... I know that I would only trust a licensed professional. If you are sick, you don't go to the Doctor's office and have the receptionist diagnose your illness, then give you an instruction book, a scalpel and say good luck? Why do that with your mortgage? Verify your loan officer has a license by inputting their name at this web site: www.nmlsconsumeraccess.org

Great question: Having been on both sides of the fence there are some minor differences to being a broker VS a direct lender. Brokers do have the ability to shop your loan around to many different sources yet they do not have all of the control over the loan file that a direct lender or bank will have. Both can be great resources for you. The bottom line is that you have to trust the individual loan officer and be secure in what he telling you. I would suggest looking a solid banker and broker that way you have both options to compare to! Good luck!

I am a Loan Officer and work for a lender. We also have the ability to broker a loan if needed. I feel that each have their own advantages. A lender will have more direct information on your loan status. A broker will sometimes offer more flexibility in qualifying and/or loan programs. Your primary focus as a consumer, should be what level of service you're going to receive from whichever Loan Officer you choose to go with. Ask for referrals, do research - with your Realtor, an Escrow Officer, friends etc. Most important, your Loan Officer is there to help guide you through the Loan Process, find the best program you qualify for and ensure you get your loan closed. Interview your Loan Officer as you would a potential job candidate. Ask them....what type of experience do you have in purchase loans? What kind of updates can I expect throughout the process? Will you advise me of market conditions in order to target a lock date?, etc. Good luck with the purchase of your new home!

hi there: To be upfront, working with a broker rates might be a bit lower since a broker can shop your loan around to different lenders but they at times are limited in pricing exceptions etc while a lender can have more flexibility since they are selling the loan to Hud, Fannie or Freddie with their agreements to these GSE's (Fannie/Freddie).Basically a broker has less rights than a lender does..In the final end, lender has to justify the loan not the broker..More exceptions can be made with a direct lender...I am a federally chartered bank NMLS # 754875...We have flexibility in pricing ( all closing costs waived) and underwriting waivers if needed (Mike 703 505 5300)

Don't chose the entity. Chose the person. Happy funding, Rudi