Mortgage Broker vs. Mortgage Banker
When you need a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. Because both a mortgage broker and mortgage banker can help you purchase your new home, it's easy to confuse the two. Yet it will be useful to understand the difference between them so you know what to expect from them as you enter the mortgage process.
About Mortgage Brokers
A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan borrower as well as the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which may 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. From application to closing, your mortgage broker facilitates your loan process: submitting your mortgage application to a number of lenders, and walking you with the chosen lender through to closing. The borrower gives a commission to the broker when the loan closes.
What is a Mortgage Banker?
Lending Institutions (banks, finance companies, and others) employ loan officers to market, and process loans from that particular institution alone. There can be an assortment of loans types to draw from although all are programs of that particular lending institution.
A loan officer represents you to the bank or other lending institution. From finding a loan product to closing, a mortgage banker will guide a borrower through the process. Lending institutions compensate their loan officers with a salary or commission.
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