Mortgage Broker vs. Mortgage Banker
Either a mortgage broker or a loan officer can help you when you work on your application for a mortgage loan. Since both yield the same outcome (a new home), it's common to confuse the two job types. Yet knowing how they differ is advantageous to the mortgage process.
What is a Mortgage Broker?
A mortgage broker is a person or firm that is an independent agent for the mortgage loan borrower as well as the lender. A mortgage broker facilitates 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 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. Which lender has the loan programs that fits your financial situation? A mortgage broker will lead you to the right one. Your broker will submit your mortgage loan application to one or more lenders, and works with the chosen lender until closing. The borrower gives a commission to the broker upon closing.
About Loan Officers
Loan officers represent a particular lending institution (such as a bank, credit union, etc.) who process mortgages and other loans originated by their employer alone. While a mortgage banker may offer quite a range of loan programs, they all are products from that specific lender.
Your mortgage banker will represent you to the bank or other lending institution. A mortgage banker can walk the borrower through the selection, processing and loan closing. Lenders compensate the mortgage bankers with a commission or salary.
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