Mortgage Broker or Mortgage Banker

Either a mortgage broker or a mortgage banker may work with you when you need a mortgage . Since both yield the same result (a new home), people sometimes confuse the two. Yet understanding the ways they differ will be helpful to the mortgage process.

About Mortgage Brokers

A mortgage broker is a person or company that works 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, private 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 investor. Which lender has the loan programs that fits your financial situation? A mortgage broker will help you find the right fit. Your broker will present your mortgage loan application to several lenders, and works with the lender of choice until closing. If the loan closes, the broker's commission is given by the borrower.

About Loan Officers

Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process loans solely from that specific institution. They may be able to market loans to fit many different situations, but all the loans will be programs from the same lender.

A loan officer (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. The borrower is helped through the entire process, from finding the loan to closing, by the mortgage banker. Either a salary or commission is paid to mortgage brokers by their employers.