In the real estate industry, mortgage brokers and real estate agents both assist consumers in purchasing homes, although their roles are different. Real estate agents help you in finding the ideal home. They will show you properties and guide you through the entire purchasing process. On the other hand, mortgage brokers assist you in obtaining a loan to cover the cost of the home. They will help you with the paperwork and locate the finest loan offers. In this guide, we will describe the differences between mortgage broker vs real estate agent. This will help you understand whom to contact for what purpose when buying a property.
What Is a Mortgage Broker?
A mortgage broker helps consumers obtain house loans. They make a link between the applicant and the bank or mortgage lender. They do not lend the money. Instead, they assist you in understanding various loan options, conditions, and interest rates. To manage paperwork, the mortgage broker keeps in touch with the lender and the borrower. When the lender is prepared to approve the loan, they help with the process. A mortgage brokers work also entails the following tasks:
- Developing relationships with both borrowers and lenders
- Verifying the references and credit histories of borrowers
- Helping the borrower select the best alternative by comparing costs and interest rates
- Completing the required paperwork for borrowers and lenders
- Advising customers on their options
What Is a Real Estate Agent?
A real estate listing agent is a skilled person who assists clients in purchasing and selling homes. To complete the real estate transaction, they meet with possible purchasers. They also talk about promoting open houses and coordinating with banks. The commission that agents often receive is a portion of the sale price of the home. They also engage in the following activities:
- Assisting homeowners in determining the asking price and putting their home up for sale
- Using real estate websites and social media to promote the house online
- Helping purchasers locate properties that meet their requirements and budget
- Assisting as a middleman between buyers and sellers
- Finishing all the documentation required to close the deal
Key Differences Between a Mortgage Broker vs. Real Estate Agent
Mortgage brokers and real estate agents are not the same. They have different positions, educations, and responsibilities. To make the proper deal, you have to understand these dissimilarities first!
Responsibilities
Real estate agents and mortgage brokers assist consumers in purchasing homes. Yet, their roles are distinct. A mortgage broker does not provide the money. Instead, they help you find a bank or lender to lend you cash for your house. To assist the lender in deciding if you qualify for a loan, they also review your credit history and score. They compare various options to assist you in selecting the best loan option.
On the other hand, a real estate agent assists you in finding a home to buy or sell. They advertise homes for sale and offer sellers tips on increasing their profits. They also assist buyers in locating properties that meet their needs.
Work Environment
Real estate and mortgage brokers might operate alone or as part of a larger firm. Both occupations require a lot of computer work on most days. Real estate agents, however, spend more time outside presenting properties to potential buyers. Brokers and agents are independent contractors. They have the freedom to set their own work schedules.
Independence
Mortgage brokers have a higher level of autonomy compared to real estate agents. This independence allows them more flexibility in serving their clients' needs. A mortgage broker typically runs their own company or franchise. So, if they are properly licensed, they can work alone or employ other brokers and agents.
However, a real estate agent is required to work under a broker and cannot work alone. Yet, every real estate professional must also hold a broker's license in certain areas.
Education
A high school degree is required to work as a real estate agent or mortgage broker. While not required, some persons also hold associate's or bachelor's degrees. Mortgage brokers need to pass the SAFE Mortgage Loan Originator Test. Additionally, they must complete a specific course on mortgage rules.
Real estate agents are required to complete a course covering real estate laws. The number of hours required depends on the state. After completing the course, they take a test with multiple-choice questions. The test assesses their knowledge of real estate laws. They can begin serving as agents after passing that test.
Licensing
Agents and brokers both are licensed professionals. Real estate and mortgage brokers must get licenses in several states to do business. Before becoming a broker, real estate agents must pass an exam. In addition, mortgage brokers must pass exams and obtain a license. Every state has its own set of regulations.
One must complete coursework and a state exam to work as a real estate broker. Occasionally, a four-year degree is beneficial. Agent experience is also required.
A 20-hour course in mortgages and ethics is required to get a license as a mortgage broker. The Nationwide Mortgage Licensing System & Registry administers tests after that.
When to Use a Mortgage Broker
If you want to obtain house loans that are difficult to find on your own, you should hire a mortgage broker. A broker can assist you in locating suitable loans and thus managing your own company. If you have poor credit or unique borrowing circumstances, they will help you. Brokers can introduce you to lenders you may not be aware of. Additionally, you can acquire a lower interest rate via mortgage brokers. This rate is often better than what many traditional lenders offer.
When to Use a Real Estate Agent
You should think about working with a licensed real estate agent when purchasing or selling a house. They can take care of the paperwork and help find the best offers. They also simplify the entire process. Agents are very knowledgeable and experienced; they can support you with every step and provide you with answers to any queries you may have.
In The End
Focusing on the argument between mortgage broker vs real estate agent, we see both professionals play critical roles in home buying. A real estate agent helps you locate and buy the ideal house. However, a mortgage broker can help you obtain a loan. At Excelsior Realty, we have years of experience and unique expertise. We provide excellent marketing and assistance for every listing and sale. Whether you're searching for your ideal home or not, we promise a fun and simple procedure. We'll also help you understand the complex terms of a mortgage. If you’re residing in the beautiful Lake Minnetonka area, visit us today!
