Mortgage Broker and Mortgage Banker
When you're looking to get a mortgage , you need to know the difference between a mortgage broker and a mortgage banker. Since both a mortgage broker and lending officer will help you buy a new home, people often confuse the two. But as you enter your application process, it will help if you recognize their differences.
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 coordinates things between you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. Which lender offers the loan programs that fits your needs? A mortgage broker will lead you to the right one. Your broker will present your mortgage application to a handful of lenders, and works with the lender of choice until closing. The borrower pays a commission to the broker when the loan closes.
The main difference between a mortgage broker and a mortgage banker is that a mortgage banker works on behalf of a lending institution (a bank, credit union, or others) to process loans only originated from that institution. Although a loan officer may promote quite a variety of loan programs, they all are products with that specific lender.
A mortgage banker will represent you to the bank or other lending institution. From finding a loan product to closing, a mortgage banker can guide you through the process. Loan officers are given a commission or salary for their services by their employers.
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