When buying a home, you may be wondering what the difference is between a realtor and a mortgage broker. Both are involved in the home-buying process, but they have different roles. So, the question is, realtor vs mortgage broker, who should you choose?
Well, in this article, we will discuss some of their differences mainly in responsibilities. Also, we will provide a discussion on who should go first between them when buying a home. So, let’s begin the discussion.
Realtors and mortgage brokers are both licensed professionals who assist their clients in different ways. A real estate agent helps buyers and sellers locate or sell a property, while a mortgage broker helps potential buyers by connecting them with the financing to purchase a property.
By understanding the difference between the two positions, you can decide who better suits to when you will buy a home. Therefore, let’s get to know more about their key differences, especially their responsibilities.
Realtors have licensed professionals who help to negotiate a property sale between buyers and sellers. They may advertise open houses, meet with potential customers or work with mortgage brokers in order to close the deal. Because they typically work on commission, real estate agents receive a percentage of the finalized purchase price for the property.
Other potential responsibilities may include:
A mortgage broker is an expert who helps people choose the right mortgage loan product from lenders. They provide advice on qualifications, interest rates, and terms to their clients, but they do not actually lend any money themselves. Once a client has been approved for a mortgage by a lender, the broker will help complete the paperwork and communication between both parties.
Other potential responsibilities may include:
Below are some of the distinguishing characteristics between a mortgage broker and a real estate agent:
The duties of a mortgage broker are connecting borrowers with lenders, while real estate agents help buyers purchase the property. Brokers also evaluate options and perform background checks for buyers upfront so that the process goes more smoothly.
On the other hand, real estate agents are responsible for connecting property buyers with sellers. Their job may entail advertising various properties, advising sellers on how to get the most profit, or guiding buyers through a list of listings that meets their criteria.
Mortgage brokers also have more autonomy compared to other positions. They often own a firm or franchise, meaning they can choose to operate alone or hire other licensed agents or brokers.
With a few exceptions, real estate agents cannot work without being affiliated with a broker. For example, in Colorado and New Mexico, all real estate professionals are required to also hold a license as a broker.
3. Work Setting
Although both mortgage brokers and real estate agents are self-employed, they sometimes choose to be employed by a larger company. Normally, they would work on a computer; however, since real estate agents often have to tour locations for buyers or inspect properties, they might spend more time outdoors. Since brokers and real estate agents usually work alone, they can decide what hours to work.
While both real estate agents and mortgage brokers play essential roles in the home-buying process, it’s wise to find your real estate agent first for a few reasons:
If you’re looking for a real estate agent, be sure to do some thorough research in finding a legit person. Also, asking a well-known person is another good thing to do.
While buying a home is an exciting time, it can also be quite a challenge. Luckily, there are professionals whose job is to help make this process easier for you. Real estate agents and mortgage brokers know exactly what to do and guide you through every step until you find and finance the perfect home for you and your family.
Before you begin the home-buying process, make sure to do research and find a reputable agent and broker. By doing this, you will be able to make the best decision for your individual needs and preferences.
Q: How do I find a reputable real estate agent or mortgage broker?
A: You can start by asking friends and family for referrals. Additionally, you may be able to find information online in the form of reviews and ratings. It’s important that you feel comfortable with your real estate agent or mortgage broker before starting the process.
Q: What should I look for in a real estate agent or mortgage broker?
A: It’s important to find someone who is knowledgeable and experienced in the home-buying process. You want to make sure that your real estate agent or mortgage broker will be able to answer questions and provide guidance throughout the entire process. Additionally, it’s important to make sure that you feel comfortable and are able to trust them.
Q: Do I need to contact a real estate agent and mortgage broker separately?
A: While it is possible to contact both types of professionals separately, it’s often easier to find your real estate agent first and ask for a referral to a reputable mortgage broker. This way, you can be sure that the loan officer you’re talking to is experienced in closing residential loans.