Mortgage Broker vs. Mortgage Banker
When you apply for a mortgage , you should know the difference between a mortgage broker and a mortgage banker. As both yield the same outcome (a new home), people sometimes confuse the two job types. But for your application process, it will help if you recognize how they are different.
About Mortgage Brokers
A mortgage broker (either a company or an individual) is an independent agent for both the mortgage loan applicant and 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 has the loans that fits your financial situation? A mortgage broker will help you find the best one. Your broker will present your mortgage application to various lenders, and works with the lender of choice until the loan closes. The broker receives a commission from the borrower at closing.
Loan Officers
Loan officers represent a specific lending institution (such as a bank, credit union, etc.) who work with mortgages and other loan programs from their place of employment alone. They may be able to promote loans to fit a variety of situations, but all the loans are programs from the same lender.
Also called a "loan representative" or "account executive," a mortgage banker represents the borrower to the lending institution. From choosing a loan product to closing, a loan officer will walk you through the process. Mortgage bankers are given a commission or salary for their work by their employers.
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