Know what to expect: Mortgage Brokers vs. Mortgage Bankers
Either a mortgage broker or a mortgage banker may assist you when you work on your application for a mortgage . People frequently confuse the two job types because both will reap the same result: a new home. But as you enter the application process, it can benefit you if you know they ways they differ.
A mortgage broker is a person or group that works as an independent agent for both the mortgage loan borrower and the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. A mortgage broker can consider your finances to find out which lender is the best fit for your loan needs. Your broker will offer your mortgage loan application to one or more lenders, and works with the lender of choice until the loan closes. Upon closing, the broker's commission is paid by the borrower.
What is a Loan Officer?
Lending Institutions (banks, finance companies, and others) employ loan officers to offer, and process mortgage loans from that particular institution alone. They may be able to promote loans to fit a variety of situations, but all the loans will be programs of the same lender.
Your mortgage banker represents you to the bank or other lending institution. The borrower is guided through the entire process, from loan selection to closing, by the mortgage banker. Mortgage bankers are given a commission or salary for their services by their employers.
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