Mortgage Broker and Mortgage Banker
When you're looking to get a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. People frequently confuse them because both will reap the same outcome: a new home. Yet understanding the differences between them is helpful to the mortgage process.
About Mortgage Brokers
A mortgage broker (either a firm or an individual) is an independent agent for both the mortgage loan applicant and the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. A mortgage broker can review your numbers to find out which lender is the right fit for your loan needs. You give your loan application to your broker, who presents it to one or more lenders. Your mortgage broker then helps you work with the lender of choice until closing. Upon closing, the broker's commission is paid by the borrower.
About Loan Officers
Lending Institutions (banks, finance companies, and others) employ mortgage bankers to offer, and process mortgage loans from that particular institution alone. They may have the ability to promote loans to fit a variety of situations, but all the loans will be programs of the same lender.
A mortgage banker represents you to the bank or other lending institution. A mortgage banker can guide you through the application, processing and closing of the loan. Either a salary or commission is paid to loan officers by their employers.
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