Mortgage Broker or Mortgage Banker
When you work on your application for a mortgage , you should know the difference between a loan officer and a mortgage broker. Since a new home is the result of the work of both mortgage broker and loan officer, people can confuse the two. But as you enter your application process, it can help if you understand they ways they differ.
About Mortgage Brokers
During the mortgage loan process, an individual or group who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. A mortgage broker can analyze your numbers to find out which lender is the best fit for you. From application to closing, your mortgage broker works with you: presenting your mortgage application to a number of lenders, and walking you with the chosen lender through to closing. If the loan closes, the broker's commission is given by the borrower.
About Loan Officers
Loan officers work for a particular lending institution (such as a bank, credit union, etc.) who offer and process mortgages and other loan products originated by their company alone. They may have the ability to market loans to fit many different situations, but all the loans are programs from the same lender.
A mortgage banker (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. The borrower is walked through the entire process, from loan selection to closing, by the loan officer. Either a salary or commission is paid to loan officers by their employers.
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