Mortgage Broker vs. Mortgage Banker
When it comes to applying for a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. Since both yield the same result (a new home), it's understandable to confuse the two job types. However, understanding the ways they differ is advantageous to your mortgage process.
About Mortgage Brokers
A mortgage broker is someone or firm that works as an independent agent for both the mortgage loan borrower and the lender. A mortgage broker coordinates 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 an individual, 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 a private investor. Which lender has the loan programs that fits your needs? A mortgage broker will lead you to the right one. Your broker will submit your mortgage application to several lenders, and works with the chosen lender until closing. The borrower submits a commission to the broker upon closing.
The biggest difference between a mortgage broker and a mortgage banker is that a loan officer works for a lending institution (a bank, credit union, or others) to offer and process loans only from the products of that institution. There can be a wide variety of loans types to draw from although all are products of that specific lender.
Your loan officer will represent you to the bank or other lending institution. A mortgage banker can walk the borrower through the application, processing and loan closing. Loan officers may be given a commission or salary for their work by their employers.
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