Langhorne Mortgage, Broker, Loan Officer
Know the difference: Mortgage Brokers vs. Mortgage Bankers
When you're looking to get a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. Since both give the same result (a new home), people often confuse the two. Yet it is important to know the difference between them so you have clear expectations of them as you enter your mortgage application process.
What is a Mortgage Broker?
A mortgage broker (either a group or an individual) is an independent agent for the mortgage loan borrower as well as the lender. 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 a private investor. Which lender has the mortgage loans that fits your needs? A mortgage broker will lead you to the right one. You give your loan application to your broker, who offers it to a number of lenders. Your mortgage broker then helps you work with the lender of choice until closing. If the loan closes, the broker's commission is paid by the borrower.
Lending Institutions (banks, finance companies, and others) employ loan officers to market, and process mortgage loans solely from that particular institution. They may have the ability to market loans to fit many different situations, but all the loans will be programs from the same lender.
A mortgage banker (also known as an "account executive" or "loan representative") represents the borrower to the lender. The borrower is guided through the entire process, from loan selection to closing, by the loan officer. Either a salary or commission is given to loan officers by their employers.
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