Know what to expect: Mortgage Brokers vs. Mortgage Bankers
Either a mortgage broker or a loan officer may assist you when you need a mortgage . It's easy to confuse the two job types since both will yield the same result: a new home. But as you enter the application process, it can help if you know their differences.
During the mortgage loan process, an individual or company who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. A mortgage broker coordinates things between you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. Which lender offers the mortgage loans that fits your financial situation? A mortgage broker will help you find the best fit. Your broker will present your mortgage application to various lenders, and works with the lender of choice until closing. The borrower pays a commission to the broker at closing.
What is a Loan Officer?
The biggest difference between a mortgage broker and a loan officer is that the latter works for a lending institution (a bank, credit union, or others) to promote and process loans solely originated from the products of that institution. There can be a wide range of loans types to choose from although all are programs of that specific lending institution.
A mortgage banker (also known as an "account executive" or "loan representative") represents the borrower to the lending institution. From finding a loan product to closing, a mortgage banker will guide you through the process. Loan officers are given a commission or salary for their services by their employers.
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