Mortgage Broker or Mortgage Banker
When you work on your application for a mortgage loan, you need to know the difference between a mortgage banker and a mortgage broker. People usually confuse the two job types as both will yield the same result: a new home. However, knowing the differences between them is advantageous to your mortgage process.
A mortgage broker is an individual or group that is an independent agent for the mortgage loan applicant as well as the lender. A mortgage broker facilitates things between 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, private investor. Which lender has the mortgage loans that is best for you? A mortgage broker will lead you to the best fit. From application to closing, your mortgage broker works with you: offering your mortgage application to several lenders, and walking you with the chosen lender through to closing. The borrower gives a commission to the broker upon closing.
The most important difference between a mortgage broker and a mortgage banker is that a loan officer is employed by a lending institution (a bank, credit union, or others) to process loans solely from the products of that institution. They may have the ability to offer loans to fit many different situations, but all the loans will be products from the same lender.
A mortgage banker (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lender. From finding a loan to closing, a loan officer will guide you through the process. Mortgage bankers will be given a commission or salary for their services by their employers.
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