Mortgage Broker and Mortgage Banker
When you work on your application for a mortgage , you need to know the difference between a mortgage broker and a mortgage banker. Because both a mortgage broker and lending officer can help you purchase a new home, it's common to confuse the two. However, understanding how they are different is beneficial to your mortgage loan process.
About Mortgage Brokers
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. A mortgage broker coordinates things for you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even an individual, 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 an individual investor. Which lender offers the loan programs that fits your needs? A mortgage broker will guide you to the best fit. You deliver your mortgage application to your broker, who offers it to several lenders. Your mortgage broker then helps you work with the lender of choice until closing. When the loan closes, the broker's commission is paid by the borrower.
About Loan Officers
Lending Institutions (banks, finance companies, and others) employ mortgage bankers to market, and process loans originated by that specific institution alone. While a loan officer may promote quite a variety of loan programs, they all are programs from that lender alone.
A loan officer (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. From selecting a loan to closing, a loan officer will guide the borrower through the process. Either a salary or commission is paid to mortgage brokers by their employers.
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