A question we get asked all the time from buyers relates to where might be their best option to get pre-approved for a home loan -- they ask what is the difference between a Mortgage Banker and a Mortgage Broker?

We suggest that buyers use a loan broker instead of going direct to a lender, such as a specific bank.

We suggest that buyers never go from one bank to another, to another and then to another, and so on in their search for the best rates and loan program. Each time a buyer's credit is pulled and checked it created an additional "ding" on their credit score. Having one's credit checked enough times and soon with enough "dings" the buyer has a lower credit score than when they began shopping for a loan -- sometimes to the point they will not get a loan at all.

The advantage of using a "Broker" instead of a "Banker" is that by using a broker, the buyer would have the advantage of a vast network of lenders across the U.S.  The loan broker has the capability to search through their databases of the many different loan programs so they can present to the buyer the options best suited for their individual needs.

Key benefits are:

• Loan brokers usually have direct access to more than 40 different banks.
• If 1 bank has 20 loan programs to offer, a broker with 40 banks has over 800 loan programs to  offer.  This means more competitive rates and lower costs to the buyer!!!
• A loan broker "may" be able to offer programs with as little as 3.5% down because of their flexibility.

Buyers Must Be Pre-Approved
If you are thinking of buying, it is critical to become pre-approved for a loan before beginning to look for a home. Doing so helps a buyer be sure they are searching in the correct price range. Also once ready to make an offer, it is mandatory in Arizona that an offer is accompanied with what is called a Loan Status Report. This document is signed off by a lender saying the buyer is qualified to buy the home they are making the offer on.