Mortgage Broker and Mortgage Banker

When you apply for a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Because both a mortgage broker and lending officer can help you buy a new home, people can confuse them. However, knowing how they are different will be beneficial to the mortgage process.

About Mortgage Brokers

During the mortgage loan process, an individual or company who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. A mortgage broker facilitates things between you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. Which lender has the mortgage loans that fits your needs? A mortgage broker will help you find the right fit. Your broker will submit your mortgage application to one or more lenders, and works with the lender of choice until the loan closes. The borrower submits a commission to the broker when the loan closes.

What is a Mortgage Banker?

The biggest difference between a mortgage broker and a loan officer is that a loan officer is employed by a lending institution (a bank, credit union, or others) to offer and process loans only originated from the programs of that institution. Although a loan officer may market quite a variety of loan programs, they are all products with that particular lender.

Your loan officer will represent you to the bank or other lending institution. The mortgage banker can guide you through the application, processing and closing of the loan. Either a salary or commission is given to loan officers by their employers.

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