Mortgage Broker vs. Mortgage Banker
When you need a mortgage , you should know the difference between a mortgage banker and a mortgage broker. Since both a mortgage broker and lending officer will help you purchase a new home, it's common to confuse the two. But as you begin your application process, it can help if you recognize their differences.
What is a Mortgage Broker?
A mortgage broker (either a company 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 offers the mortgage loans that fits your needs? A mortgage broker will help you find the right one. From application to closing, your mortgage broker works with you: offering your loan application to a number of lenders, and walking you with the chosen lender through to the closing of your loan. The borrower gives a commission to the broker at closing.
About Mortgage Bankers
Loan officers work for a specific lending institution (such as a bank) who work with mortgages and other loans for their place of employment alone. While a mortgage banker may market quite a range of loans, they will be products from that particular lender.
Your loan officer represents you to the bank or other lending institution. The borrower is guided through the entire process, from loan selection to closing, by the loan officer. Lenders compensate their loan officers with a commission or salary.
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