New Orleans Mortgage, Broker, Loan Officer
Know what to expect: Mortgage Brokers vs. Loan Officers
When you apply for a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Since both produce the same result (a new home), it's understandable to confuse them. Yet understanding the ways they differ will be helpful to the mortgage loan process.
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. A mortgage broker facilitates 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 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 an individual investor. Which lender offers the mortgage loans that fits your financial situation? A mortgage broker will guide you to the right one. From application to closing, your mortgage broker works with you: submitting your loan application to a number of lenders, and walking you with the chosen lender through to the closing of the loan. When the loan closes, the broker's commission comes from the borrower.
About Mortgage Bankers
The biggest difference between a mortgage broker and a loan officer is that a mortgage banker is employed by a lending institution (a bank, credit union, or others) to market and process loans solely from the programs of that institution. There may be a variety of loans types to choose from although all are programs of that specific lender.
A loan officer (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lender. The borrower is guided through the whole process, from selecting the loan to closing, by the mortgage banker. Lenders compensate the mortgage bankers with a salary or commission.
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