Mortgage Broker vs. Loan Officer
When you're looking to get a mortgage loan, you need to know the difference between a mortgage banker and a mortgage broker. Since both a mortgage broker and lending officer will help you purchase a new home, people sometimes confuse the two. Yet knowing how they are different will be beneficial to the mortgage loan process.
About Mortgage Brokers
A mortgage broker is someone or firm that is an independent agent for both the mortgage loan applicant 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 a private investor. Which lender has the loan programs that fits your financial situation? A mortgage broker will lead you to the right one. From application to closing, your mortgage broker works with you: offering your mortgage application to several lenders, and coordinating the process with the lender through to the closing of your loan. At closing, the broker's commission is given by the borrower.
The main difference between a mortgage broker and a loan officer is that a mortgage banker works on behalf of a lending institution (a bank, credit union, or others) to process loans solely from that institution. There may be an assortment of loans types to choose from even though all are programs of that particular lending institution.
Your mortgage banker represents you to the bank or other lending institution. The mortgage banker can walk the borrower through the selection, processing and closing of the loan. Either a salary or commission is given to loan officers by their employers.
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