Know the difference: Mortgage Brokers vs. Loan Officers
When you need a mortgage , you should know the difference between a mortgage broker and a mortgage banker. People can confuse these as both will give the same outcome: a new home. However, it will be beneficial to know the ways they differ so you know what to expect from them during your mortgage application 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. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. Which lender offers the loan programs that is right for you? A mortgage broker will lead you to the right fit. From application to closing, your mortgage broker works with you: presenting your application to a number of lenders, and walking you with the chosen lender through to closing. The broker receives a commission from the borrower upon closing.
About Loan Officers
The biggest difference between a mortgage broker and a mortgage banker is that the latter works for a lending institution (a bank, credit union, or others) to process loans solely from that institution. There may be a variety of loans types to choose from even though all are products of that particular lending institution.
Your loan officer represents you to the bank or other lending institution. From finding a loan program to closing, a loan officer will help the borrower through the process. Either a salary or commission is paid to mortgage brokers by their employers.
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