Did you know that 87% of all home buyers reported using a real estate agent? Buyers that use a mortgage broker are less common, but these professionals can be just as helpful during the home buying process.
What is the difference between a mortgage broker vs. real estate agent? Do you need both when you are on the market for a new home?
Keep reading to have your questions answered.
Mortgage Broker vs. Real Estate Agent
The biggest difference between a mortgage broker vs. real estate agent is that agents work on buying or selling a property while a broker focuses on the purchasing side.
Let’s take a deeper dive into the responsibilities of each:
What Is a Real Estate Agent?
A real estate agent will help soon-to-be homeowners find the perfect house on the market.
Agents have access to property listings and know the local market. They also know neighborhoods, reputations, local schools, and more.
Although a real estate agent can introduce you to various home loan options, understanding which program works best for you falls under the responsibilities of a mortgage broker.
When you work with a real estate agent to buy or sell a home, you’ll encounter a lot of fees and often have to pay a commission. You can negotiate these costs, but there is a way to avoid them altogether.
You can sell your home for cash to avoid closing fees and paying a real estate commission fee. Real estate investors buy houses for cash to make the selling/buying process easier on homeowners.
What Is a Mortgage Broker?
The mortgage broker profession is heavily regulated and each state has licensing requirements. This benefits the home buyer because mortgage brokers are all bonded, trained, and act with your best interest in mind.
You’ll find that you can rely on a mortgage broker for information on property investment loans, credit score questions, and down payment coaching.
Some choose to work with a loan officer instead of a mortgage broker. The job roles are similar as they both help you find the home financing you need.
However, a mortgage broker tends to provide more benefits because they work with several lenders. A loan officer works with one specific lender. You’ll have more financing options when you work with a mortgage broker.
Some mortgage brokers are also real estate agents. If you prefer an all-in-one service, find a real estate agent that is also a licensed mortgage broker.
Finding a Home That Fits You
To find a home that fits your needs, you have to work with the right professionals. When it comes to a mortgage broker vs. real estate agent, both jobs are different but necessary throughout the home buying process.
A real estate agent can help you buy or sell your home and offers knowledge of the local real estate market. A mortgage broker can help you find the best financing options to secure your new home.
Working with both professionals will make your home search much easier. For more guides on real estate, check out the other posts on our blog.
