Missouri City Mortgage, Broker, Loan Officer
Mortgage Broker vs. Mortgage Banker
When you're looking to get a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Because a new home is the outcome of the work of both mortgage broker and mortgage banker, it's common to confuse the two. But as you enter your application process, it will benefit you if you recognize they ways they differ.
What is a Mortgage Broker?
A mortgage broker (either a firm or an individual) is an independent agent for both the mortgage loan borrower and the lender. A mortgage broker facilitates 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 an individual 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. Which lender offers the mortgage loans that is best for you? A mortgage broker will guide you to the best fit. Your broker will present your mortgage loan application to various lenders, and works with the lender of choice until the loan closes. At closing, the broker's commission is paid by the borrower.
The main difference between a mortgage broker and a loan officer is that the latter works for a lending institution (a bank, credit union, or others) to process loans only originated from that institution. They may be able to offer loans to fit a variety of situations, but all the loans are products of the same lender.
Your mortgage banker represents you to the bank or other lending institution. The borrower is walked through the entire process, from selecting a loan to closing, by the loan officer. Mortgage bankers are compensated with a commission or salary for their services by their employers.
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