Vienna Mortgage, Broker, Loan Officer
Know the difference: Mortgage Brokers vs. Mortgage Bankers
When you apply for a mortgage , you need to know the difference between a mortgage broker and a loan officer. Since both reap the same outcome (a new home), it's understandable to confuse them. Yet knowing how they are different will be important 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 both mortgage loan borrower and lender is a mortgage broker. A mortgage broker coordinates 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 credit union, bank, trust company, finance company, mortgage corporation or even a private investor. Which lender offers the loans that is right for you? A mortgage broker will help you find the best fit. From application to closing, your mortgage broker facilitates the loan process: presenting your mortgage application to several lenders, and coordinating the process with the lender through to closing. The borrower submits a commission to the broker if the loan closes.
What is a Mortgage Banker?
Lending Institutions (banks, finance companies, and others) employ loan officers to offer, and process loans solely from that specific institution. While a mortgage banker may promote quite a range of loans, they all are products of that specific lender.
A loan officer (also called an "account executive" or "loan representative") represents the borrower to the lender. The borrower is guided through the whole process, from selecting the loan to closing, by the mortgage banker. Mortgage bankers are compensated with a commission or salary for their work by their employers.
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