Mortgage companies add tremendous value to a nation's economy. They provide loans for investment, homes, and for several other reasons, thereby facilitating societal growth. However, for several Americans, associating with California mortgage companies or any other mortgage firm in the country isn't the most fun-filled experience. And a lot of this could be because not many know how these financial institutions really work. In this article, we'll help you get to know more about your lenders.
After having made the decision, the broker puts together and forwards the borrower loan file to any lender he believes would best suit borrower requirements. Contrarily, loan officers based out of banks have much limited functionality as their loan offerings can only revolve around the products offered by the bank they're working for. In other words, when you're dealing with a broker, you're entering a shopping mall. With a bank officer, you are entering into a particular shop in the mall. However, there are times when banks manage to lure in customers by offering an interest rate lower than any broker's offer. Banks can manage such low interest rates because they need not bother about getting back their money by putting the loan on sale.