Langhorne Mortgage, Broker, Loan Officer
Mortgage Broker and Mortgage Banker
When you're looking to get a mortgage , you should know the difference between a mortgage banker and a mortgage broker. Since a new home is the outcome of the work of both mortgage broker and mortgage banker, it's understandable to confuse the two. But as you enter your application process, it can benefit you if you understand how they differ.
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. A mortgage broker coordinates things for 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 credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. You partner with a mortgage broker to analyze your financial circumstance and find the lender who has the right loan program for you. Your broker will present your loan application to several lenders, and works with the chosen lender until closing. The broker gets a commission from the borrower upon closing.
What is a Mortgage Banker?
The biggest difference between a mortgage broker and a mortgage banker is that a loan officer works for a lending institution (a bank, credit union, or others) to process loans solely originated from the products of that institution. They may be able to promote loans to fit many different situations, but all the loans will be products of the same lender.
A mortgage banker (also known as an "account executive" or "loan representative") represents the borrower to the lender. The mortgage banker will walk the borrower through the selection, processing and closing of the loan. Either a salary or commission is paid to mortgage brokers by their employers.
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