Know what to expect: Mortgage Brokers and Mortgage Bankers
When it's time to get a mortgage loan, you should know the difference between a mortgage broker and a loan officer. It's understandable to confuse them as both will yield the same outcome: a new home. However, it is useful to understand the difference between the two jobs so you have clear expectations of them during the mortgage process.
About Mortgage Brokers
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. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even a 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: submitting your mortgage application to several lenders, and walking you with the chosen lender through to closing. Upon closing, the broker's commission comes from the borrower.
About Mortgage Bankers
The main difference between a mortgage broker and a mortgage banker is that the latter is employed by a lending institution (a bank, credit union, or others) to promote and process loans only from that institution. There can be a wide variety of loans types to draw from although all are programs of that particular lending institution.
Your loan officer will represent you to the bank or other lending institution. From selecting a loan to closing, a loan officer will help a borrower through the process. Mortgage bankers are compensated with a commission or salary for their work by their employers.
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