Mortgage Broker vs. Mortgage Banker
When you're looking to get a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Since a new home is the result of the work of both mortgage broker and mortgage banker, people often confuse the two job types. Yet knowing the differences between them is helpful to your mortgage loan process.
About Mortgage Brokers
During the mortgage loan process, an individual or company who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Which lender offers the mortgage loans that is right for you? A mortgage broker will lead you to the best fit. From application to closing, your mortgage broker facilitates your loan process: presenting your loan application to several lenders, and coordinating the process with the lender through to closing. If the loan closes, the broker's commission is given by the borrower.
What is a Loan Officer?
Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process mortgage loans from that specific institution alone. There may be a variety of loans types to draw from even though all are programs of that specific lending institution.
A mortgage banker (also called an "account executive" or "loan representative") represents the borrower to the lender. A loan officer will walk the borrower through the selection, processing and closing of the loan. Lenders give their mortgage bankers a commission or salary.
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