Know what to expect: Mortgage Brokers vs. Mortgage Bankers
Either a mortgage broker or a mortgage banker may help you when it comes to finding a mortgage loan. Since both produce the same result (a new home), people frequently confuse the two job types. But as you enter the application process, it will benefit you if you know they ways they differ.
What is a Mortgage Broker?
A mortgage broker (either a group or an individual) is an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Which lender has the mortgage loans that fits your needs? A mortgage broker will help you find the right fit. From application to closing, your mortgage broker works with you: presenting your mortgage application to several lenders, and walking you with the chosen lender through to closing. The broker is given a commission from the borrower at closing.
About Mortgage Bankers
Mortgage Bankers are representatives of a specific lending institution (such as a bank, credit union, etc.) who work with mortgages and other loan products from their place of employment alone. While a loan officer may offer quite a variety of loan programs, they all are programs with that particular lender.
Your loan officer represents you to the bank or other lending institution. The borrower is helped through the entire process, from selecting the loan to closing, by the mortgage banker. Loan officers can be compensated with a commission or salary for their services by their employers.
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