Mortgage Broker vs. Mortgage Banker
When it comes to finding a mortgage loan, you should know the difference between a mortgage banker and a mortgage broker. Since both a mortgage broker and mortgage banker will help you fund a new home, it's easy to confuse them. But as you begin the application process, it can benefit you if you understand their differences.
What is a Mortgage Broker?
During the mortgage loan process, an individual or firm who is an independent agent for the mortgage loan applicant as well as the lender is a mortgage broker. 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 investor. Which lender offers the loans that fits your needs? A mortgage broker will lead you to the best fit. From application to closing, your mortgage broker facilitates the loan process: presenting your mortgage application to several lenders, and walking you with the chosen lender through to closing. The borrower gives a commission to the broker at closing.
About Loan Officers
Mortgage Bankers work for a specific lending institution (such as a bank, credit union, etc.) who offer and process mortgages and other lending programs from their company alone. Although a loan officer may market quite a variety of loans, they all are products of that lender alone.
Your mortgage banker represents you to the bank or other lending institution. A loan officer will guide you through the application, processing and loan closing. Lending institutions pay their loan officers a commission or salary.
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