Know the difference: Mortgage Brokers and Loan Officers
When you work on your application for a mortgage , you should know the difference between a mortgage banker and a mortgage broker. As a new home is the outcome of the work of both mortgage broker and loan officer, people frequently confuse the two job types. But as you begin your application process, it can help if you know how they are different.
About Mortgage Brokers
A mortgage broker (either a group or an individual) is an independent agent for both the mortgage loan borrower and 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 investor. You partner with a mortgage broker to analyze your financial circumstance and find the lender who has the best mortgage loan for you. You deliver your mortgage application to your broker, who submits it to a number of lenders. Your mortgage broker then helps you work with the lender of choice until closing. The broker is given a commission from the borrower upon closing.
What is a Loan Officer?
The main difference between a mortgage broker and a mortgage banker is that a loan officer is employed by a lending institution (a bank, credit union, or others) to process loans only originated from that institution. There can be an assortment of loans types to choose from even though all are programs of that specific lending institution.
A mortgage banker represents you to the bank or other lending institution. The borrower is guided through the entire process, from loan selection to closing, by the mortgage banker. Mortgage bankers can be given a commission or salary for their services by their employers.
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