Miami Mortgage, Broker, Loan Officer

Mortgage Broker vs. Mortgage Banker

When you apply for a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. As both a mortgage broker and mortgage banker can help you fund your new home, people sometimes confuse them. Yet recognizing the differences between them is valuable to your mortgage process.

What is a Mortgage Broker?

A mortgage broker (either a group or an individual) is an independent agent for both the mortgage loan applicant and the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. A mortgage broker can consider your financial situation to determine which lender is the right fit for your loan needs. You deliver your mortgage application to your broker, who presents it to one or more lenders. Your mortgage broker then guides your work with the lender of choice until the loan closes. Upon closing, the broker's commission is given by the borrower.

What is a Mortgage Banker?

Loan officers represent a specific lending institution (such as a bank) who work with mortgages and other loans originated by their employer alone. There can be a variety of loans types to draw from although all are programs of that specific lending institution.

A mortgage banker (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. The borrower is guided through the entire process, from loan selection to closing, by the mortgage banker. Loan officers are compensated with a commission or salary for their services by their employers.

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