Know what to expect: Mortgage Brokers and Mortgage Bankers

Either a mortgage broker or a mortgage banker can assist you when it's time to find a mortgage loan. As both produce the same outcome (a new home), it's understandable to confuse them. However, it is useful to know the ways they differ so you know what to expect from them as you enter the mortgage application process.

Mortgage Brokers

A mortgage broker (either a group or an individual) is an independent agent for both the mortgage loan borrower and the lender. A mortgage broker coordinates things for you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even an individual, 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. A mortgage broker can review your numbers to determine which lender is the best fit for you. From application to closing, your mortgage broker facilitates the loan process: offering your mortgage application to several lenders, and walking you with the chosen lender through to the closing of the loan. The borrower gives a commission to the broker upon closing.

About Loan Officers

Loan officers represent a particular lending institution (such as a bank) who market and process mortgages and other lending programs from their company alone. Although a mortgage banker may promote quite a variety of loan programs, they are all programs of that particular lender.

A mortgage banker (also known as an "account executive" or "loan representative") represents the borrower to the lending institution. The borrower is guided through the entire process, from loan selection to closing, by the loan officer. Lenders give their mortgage bankers a salary or commission.