What i s the difference between a broker, and FHA Underwritter?
Do not know whether to deal w/broker or FHA Underwriter. Aren't they both out to make money of you?
- 1 decade agoFavorite Answer
FHA underwriter's don't look to make money off of anyone. They are typically a salary position. Your question is off a little. A broker has the ability to send their deals to sevaral different investors to get the best deal for you. As long as they aren't charging a high yield or a large amt of origination they aren't looking to screw you. Are you happy with your rate? If so then it doesn't matter. Broker's can also do FHA loans through other investors and they are still going to be underwritten by an FHA underwriter. Doesn't matter if you go to ABC Mortgage Broker or Bank of America...FHA loans will have FHA underwriters. Typically direct lenders and banks have better rates but tighter guidelines. Broker's may have access to more programs and have an easier time closing tough deals but the rate might be a little higher.
- Steve DLv 71 decade ago
A broker is a person who is in business to find you a bank to loan money to you. He warns money by matching you with a lender.
The underwriter is the person who receives all the information and decides, based on mathematical formulas and qualifications put in place by the lender, whether you qualify for the loan (he represents the lenders).
You can do without the broker by calling around to the banks for yourself. You can't avoid the underwriter.
And everyone is out to make money off you, otherwise no one could stay in business.