Maspeth Mortgage, Broker, Loan Officer
Know the difference: Mortgage Brokers and Mortgage Bankers
When you work on your application 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, people usually confuse them. But for the application process, it will help if you recognize how they differ.
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 an individual, private investor. Which lender has the loan programs that is right for you? A mortgage broker will lead you to the best one. Your broker will offer your mortgage application to one or more lenders, and works with the chosen lender until the loan closes. The borrower submits a commission to the broker when the loan closes.
What is a Loan Officer?
Mortgage Bankers are representatives of a particular lending institution (such as a bank) who work with mortgages and other loan programs for their employer alone. Although a mortgage banker may market quite a range of loan programs, they all are products with that lender alone.
A mortgage banker (also known as an "account executive" or "loan representative") represents the borrower to the lending institution. From finding a loan product to closing, a loan officer will walk you through the process. Lenders give their loan officers a salary or commission.
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