Know what to expect: Mortgage Brokers vs. Mortgage Bankers
When it comes to finding a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Because both a mortgage broker and mortgage banker can help you buy a new home, people usually confuse them. However, it is beneficial to know how they differ so you know what to expect from them as you enter your mortgage application process.
About Mortgage Brokers
A mortgage broker is someone or firm 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 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. A mortgage broker will analyze your finances to find out which lender is the best fit for you. Your broker will present your mortgage loan application to several lenders, and works with the lender of choice until the loan closes. The borrower pays a commission to the broker if the loan closes.
What is a Mortgage Banker?
Lending Institutions (banks, finance companies, and others) employ mortgage bankers to offer, and process mortgage loans on behalf of that specific institution alone. There can be a wide variety of loans types to choose from although all are products of that specific lender.
Your loan officer represents you to the bank or other lending institution. From choosing a loan product to closing, a loan officer can walk the borrower through the process. Either a salary or commission is paid to loan officers by their employers.
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