Mortgage Broker and Mortgage Banker
When you work on your application for a mortgage loan, you should know the difference between a mortgage broker and a loan officer. Since both a mortgage broker and lending officer can help you buy your new home, it's easy to confuse them. However, knowing the ways they differ is important to your mortgage process.
About Mortgage Brokers
A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan borrower as well as the lender. A mortgage broker facilitates things for you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. Which lender offers the mortgage loans that is right for you? A mortgage broker will help you find the right fit. From application to closing, your mortgage broker works with you: submitting your mortgage application to a number of lenders, and walking you with the chosen lender through to closing. The broker receives a commission from the borrower when the loan closes.
About Loan Officers
The biggest difference between a mortgage broker and a loan officer is that a mortgage banker works for a lending institution (a bank, credit union, or others) to process loans only originated from that institution. They may have the ability to offer loans to fit many different situations, but all the loans are programs from the same lender.
Your mortgage banker will represent you to the bank or other lending institution. The borrower is helped through the entire process, from loan selection to closing, by the loan officer. Lenders compensate the loan officers with a commission or salary.
In the market for a mortgage loan? We'd be thrilled to discuss your mortgage needs! Call us at
562 320-0510. Ready to get started? Apply Online Now