Know what to expect: Mortgage Brokers and Mortgage Bankers
Either a mortgage broker or a mortgage banker may assist you when you're looking to get a mortgage loan. Because a new home is the result of the work of both mortgage broker and loan officer, people can confuse the two job types. But as you begin your application process, it will help if you know their differences.
What is a Mortgage Broker?
During the mortgage loan process, an individual or firm who is an independent agent for the mortgage loan borrower as well as the lender is a mortgage broker. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. A mortgage broker will examine your financial situation to determine which lender is the best fit for you. From application to closing, your mortgage broker facilitates your loan process: submitting your mortgage application to several lenders, and walking you with the chosen lender through to the closing of your loan. The borrower submits a commission to the broker at closing.
Mortgage Bankers are representatives of a particular lending institution (such as a bank, credit union, etc.) who work with mortgages and other loan products for their place of employment alone. They may be able to offer loans to fit a variety of situations, but all the loans will be products from the same lender.
Your mortgage banker represents you to the bank or other lending institution. The borrower is helped through the entire process, from selecting the loan to closing, by the loan officer. Either a salary or commission is given to loan officers by their employers.
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