HOW IT WORKS
"The more you do, the more you can do" - Steve Chandler
Many people don't understand how a real estate agent or mortgage originator gets paid so here you go:
REAL ESTATE AGENT:
A seller pays a commission to real estate agents to list and sell their house. As a buyer, your real estate agent help find and show you houses that are listed for sale. When you find one you like, your agent submits your offer and hopefully it is accepted. The commission that the seller agreed to pay for the sale of their house will be split in some fashion by the real estate agent who listed the house (and the company they work for) and the real estate agent who is selling you the house (and the company they work for) . As a buyer you do not pay a real estate agent money to help you find a house....the seller is paying for your agent so to not use one in my opinion is madness! Here's a good explanation
MORTGAGE LOAN ORIGINATOR:
When you get a mortgage whether from a bank, mortgage banker or mortgage broker your loan originator is being paid by their bank, banker or broker. Just like buying or selling most anything the salary or commission your mortgage loan originator (and the rest of the staff) earns is built into the loan/rate like the money your employer pays you is built into their product or service. You should not pay extra to get a loan from a mortgage broker vs a bank. On the contrary, a mortgage broker or banker is looking at all of their lending resources trying to find you the best deal possible just like an insurance broker tries to find you the best insurance and price. Because of this you should be getting the same or better rate and fees on your loan through a mortgage broker or mortgage banker than from a large bank.
If you have any questions about this or any other info contact me at