Use a Broker or Banker?
When obtaining a VA mortgage loan you’ll soon find you have plenty of options. But perhaps one of the very first choices you will make is where you will obtain your VA loan. There is no shortage of mortgage companies and your real estate agent will also have a list of referrals for you to review but one of the basic questions is whether to get your VA loan from a mortgage broker or a mortgage banker.
What’s the difference between a mortgage broker and a mortgage banker? Both will have a loan officer and a processor and can provide you with guidance on the proper VA loan program that’s right for you. A mortgage broker takes your application, reviews your credit report and can even submit your loan application through an automated approval system. But the mortgage broker does not issue the VA mortgage, a mortgage banker does.
A mortgage banker provides the same initial services that a broker will provide but takes the loan application through the complete process from the application stage to the final approval to sending the funds to the settlement agent at the closing table.
Is one better than the other? In terms of knowing the ins and outs of VA home loans, as long as the broker or banker is experienced with VA mortgages the initial stages of the loan process are nearly identical. Yet when it comes to actually evaluating the loan application to make sure it meets VA lending standards, the mortgage banker has the upper hand. A broker sends your loan to a lender for final approval whereas a mortgage banker does it all in house.