Erin\’s Blog

May 10, 2006

Mortgage Broker vs. Mortgage Banker

Filed under: Mortgage Finance — jenkins @ 9:14 pm

I was going to write a post on this but I thought Mr. Bronchick did a better job than I could.

Mortgage Broker vs. Mortgage Banker
by William Bronchick
Many consumers assume that “mortgage companies” are banks that lend their own money. In fact, a company that you deal with may be either a mortgage banker or a mortgage broker.A mortgage banker is a direct lender; it lends you its own money, although it often sells the loan to the secondary market. Mortgage bankers (also known as “direct lenders”) sometimes retain servicing rights as well.A mortgage broker is a middleman; he does the loan shopping and analysis for the borrower and puts the lender and borrower together. Many of the lenders through which the broker finds loans do not deal directly with the public (hence the expression, “wholesale lender”).Using a mortgage banker can save the fees of a middleman and can make the loan process easier. A mortgage banker can give you direct loan approval, whereas a broker gives you information second-hand. However, many mortgage banks are limited in what they can offer, which is essentially their own product. In addition, if you present your loan application in a poor light, you’ve already made a bad impression. I am not suggesting you lie or mislead a lender, but understand that presenting a loan to a lender is like presenting your taxes to the IRS; there are many ways to do it, all of which are valid and legal. Using a mortgage broker allows you to present a loan application to a different lender in a different light (and you are a “fresh” face).A mortgage broker charges a fee for his service, but has access to a wide variety of loan programs. He also may have knowledge of how to present your loan application to different lenders for approval. Some mortgage bankers also broker loans. As an investor it is wise to have both a mortgage broker and a mortgage banker on your team.

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Fastest way to increase your credit score

Filed under: Mortgage Finance — jenkins @ 8:55 pm

A customer came in today and she wanted to know how much money to pay down on her credit cards to increase her credit cards.  Now I’m not a credit repair professional but here is what I have learned.   Most increases to your credit score take place over time and require an ongoing effort from you. The only true credit score quick-fix is to pay down debt.  The idea is to only use 40% or less of your credit limit.  For example if your credit limit is $1000 then use $400 no more.  This customer had used $1,000 on a $1,000 credit card.  She was going to pay that down $600 to $400 which is a great idea unless it put’s you in a bind.  (Like it was going to do her.)  But instead, she called her creditor and got her limit raised to $1,500.  This allowed her to pay down just $400 saving her $200 out of pocket just by making a phone call.  Do you have any tricks you’ve used to improve your credit score?  How about a question?  I’ll be glad to answer to the best of my ability.

Misc. Comments on my webpage and blog site

Filed under: General — jenkins @ 4:53 pm

I would love to get comments regarding my website and blog site.  So feel free to comment here. For something not covered in any other post.

May 9, 2006

For Sale By Owner vs. Realtor

Filed under: Selling your home — jenkins @ 8:32 pm

Let me start by saying, that a realtor who works for a living and wants to actively sell your home, is worth thier weight in gold in selling your home.  That being said, recently some friends came to me after 3 months of listing thier home with a realtor with no success.  They were frustrated with the lack of effort that thier realtor seemed to put forth.  They told me how they could put a sign in thier yard and get the same return without paying a realtor.  I told them what I said earlier that a realtor who believes in selling your home is Great but if they don't believe in it then they aren't going to put forth the effort that is needed.  I explained that if they wanted to sell thier home it would take hard work and dedication and they needed to be up to the challenge.  I also offered my assistance in advertising and support.  So I added a section to my web page to list homes for sale and I use my advertising that is already in place to direct people to the site.  Bottom line mortgage professionals no matter how good thier intention are not realtors and don't have the experience of selling homes that realtors do.  But if your going on your own then we can definately assist you with the process.  Will it save you money?  Depends on the realtor.  A good one earns thier money and saves you time.  What's your time worth?  A bad realtor cost you time.  What's your time worth?  What's your feeling on For Sale by owner vs. Realtors?

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