Mortgage Broker vs. Loan Officer
When you need a mortgage , you should know the difference between a mortgage banker and a mortgage broker. Because a new home is the outcome of the work of both mortgage broker and mortgage banker, it's understandable to confuse the two job types. But as you begin your application process, it will benefit you if you know how they are different.
About Mortgage Brokers
A mortgage broker is a person or company that serves as an independent agent for the mortgage loan applicant as well as the lender. A mortgage broker coordinates things for 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 bank, trust company, credit union, mortgage corporation, finance company or even a private investor. You partner with a mortgage broker to look at your financial situation and find the lender who has the best mortgage loan for you. From application to closing, your mortgage broker works with you: offering your application to a number of lenders, and walking you with the chosen lender through to closing. Upon closing, the broker's commission is given by the borrower.
About Mortgage Bankers
The most important difference between a mortgage broker and a loan officer is that the latter is employed by a lending institution (a bank, credit union, or others) to promote and process loans solely from the programs of that institution. There can be an assortment of loans types to draw from, but all are products of that specific lender.
Also called a "loan representative" or "account executive," a mortgage banker represents the borrower to the lender. The mortgage banker can guide the borrower through the selection, processing and closing of the loan. Lenders compensate the mortgage bankers with a commission or salary.
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