Mortgage Broker or Mortgage Banker
When you need a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. Because a new home is the result of the work of both mortgage broker and mortgage banker, people usually confuse the two. Yet it will be useful to recognize the difference between them so you have clear expectations of them during the mortgage process.
What is a Mortgage Broker?
A mortgage broker is someone or group that is an independent agent for the mortgage loan applicant as well as the lender. A mortgage broker facilitates things between you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. You work with a mortgage broker to analyze your financial situation and find the lender who has the best loan program for you. From application to closing, your mortgage broker facilitates your loan process: presenting your mortgage application to a number of lenders, and coordinating the process with the lender through to the closing of your loan. The borrower submits a commission to the broker upon closing.
What is a Mortgage Banker?
Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process loans solely from that particular institution. They may be able to market loans to fit a variety of situations, but all the loans are programs of the same lender.
A loan officer (also known as an "account executive" or "loan representative") represents the borrower to the lender. From choosing a loan product to closing, a mortgage banker will walk you through the process. Loan officers are given a commission or salary for their work by their employers.
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