Know what to expect: Mortgage Brokers and Mortgage Bankers
When it comes to finding a mortgage , you should know the difference between a mortgage banker and a mortgage broker. As both a mortgage broker and mortgage banker will help you fund your new home, people usually confuse the two. Yet it will be useful to understand the difference between the two jobs so you know what to expect from them during the mortgage process.
A mortgage broker is someone or group that serves as an independent agent for both the mortgage loan applicant and 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 an individual 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. Which lender has the loan programs that fits your financial situation? A mortgage broker will guide you to the right fit. You give your application to your broker, who presents it to a number of lenders. Your mortgage broker then assists your work with the lender of choice until closing. Upon closing, the broker's commission is given by the borrower.
About Loan Officers
Lending Institutions (banks, finance companies, and others) employ loan officers to market, and process loans on behalf of that specific institution alone. There can be a wide range of loans types to choose from, but all are products of that specific lender.
A mortgage banker (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. The borrower is walked through the entire process, from choosing the loan to closing, by the loan officer. Lenders give their mortgage bankers a commission or salary.
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