Americans move a lot. More than seven million home sales take place each year.
Is that going to be you? Are you planning to buy a new home this year?
There’s a lot you need to know in order to find success in a hot real estate market like the one we are in right now. Most importantly, you need to know which real estate professionals you need to work with in order to get the best mortgage loans and find the best properties.
Mortgage broker vs. real estate broker, are two terms thrown about frequently in the home buying process. Are they different? Are they the same?
And which one are you most likely to work with? Keep reading below to discover the difference between a mortgage broker and a real estate broker.
What Is a Broker?
First, a little clarification. What exactly is a broker?
A broker is a person or entity who helps to facilitate a transaction or negotiation. They bring together the buyer and seller.
Buyers will come to a broker looking for someone that can help. They will explain their goals and their unique situation. The broker will then consider all of their network connections and select the ideal seller based on the buyers’ needs.
The broker brings the two parties together. If a transaction is agreed upon, the broker will earn a commission for the service.
What Is a Mortgage Broker?
So what is a mortgage broker? These individuals (who usually work for larger firms) will help residential or commercial customers who are trying to get a mortgage loan.
Homebuyers will come to a mortgage broker for help finding the best mortgage lender for their situation and goals. The buyer will “apply” for a mortgage with the broker.
The broker then takes all of that information and runs it through their list of preferred mortgage lenders to find the customer the best deal on their mortgage.
Once a mortgage is officiated, the broker earns a commission for facilitating the transaction.
Real Estate Broker Guide
What is a real estate broker? It’s an entity or person that oversees a group of real estate agents. These are the agents you hire to help you find a new home, negotiate the purchase price, and finalize the sale. They have a real estate license allowing them to help you find properties and negotiate with the seller.
They provide individual real estate agents (who are operating their own business) with supervision, guidance, and resources to make their job easier. They also attract many new customers who they can refer to the individual agents within their brokerage.
Mortgage Broker vs. Real Estate Broker
So what is the key difference between a mortgage broker and a real estate broker?
A mortgage broker helps homebuyers find the ideal mortgage lender for their financing needs. A real estate broker will connect buyers with the right real estate agent to help you find the actual property you intend to buy.
Making Your Homebuying Dreams a Reality
When you want to buy a home, whether it’s your first or 10th, your goal is to assemble the best team you can. You cannot buy a home alone.
If you want to succeed in a highly competitive market, you need to work with the top lenders, agents, title companies, and so forth. Mortgage broker vs. real estate broker, both serve different functions but you need both for a successful home purchase.
Looking for more information like this? Visit our blog today to find more mortgage broker tips.