Langhorne Mortgage, Broker, Loan Officer

Mortgage Broker vs. Mortgage Banker

When you apply for a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. As a new home is the result of the work of both mortgage broker and loan officer, it's easy to confuse them. Yet it will be beneficial to know the difference between them so you have clear expectations of them as you enter your mortgage process.

What is a Mortgage Broker?

During the mortgage loan process, an individual or group who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. You partner with a mortgage broker to look at your financial circumstance and lead you to the lender who has the best loan program for you. You give your loan application to your broker, who submits it to various lenders. Your mortgage broker then helps you work with the lender of choice until closing. At closing, the broker's commission comes from the borrower.

About Mortgage Bankers

Mortgage Bankers represent a particular lending institution (such as a bank) who market and process mortgages and other loans on behalf of their employer alone. There can be a variety of loans types to choose from, but all are products of that particular lending institution.

Also called a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lender. From selecting a loan product to closing, a loan officer can guide you through the process. Lenders compensate the loan officers with a commission or salary.

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