Mortgage Broker vs. Loan Officer
When you apply for a mortgage , you should know the difference between a mortgage banker and a mortgage broker. It's understandable to confuse the two as both will produce the same result: a new home. However, knowing the ways they differ is advantageous to your mortgage loan process.
A mortgage broker (either a group or an individual) is an independent agent for the mortgage loan applicant as well as 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 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, private investor. Which lender has the loans that fits your financial situation? A mortgage broker will guide you to the best fit. Your broker will present your mortgage application to several lenders, and works with the chosen lender until closing. At closing, the broker's commission comes from the borrower.
Lending Institutions (banks, finance companies, and others) employ mortgage bankers to offer, and process loans from that particular institution alone. There may be a wide range of loans types to choose from although all are products of that specific lending institution.
Your mortgage banker represents you to the bank or other lending institution. The borrower is helped through the entire process, from loan selection to closing, by the mortgage banker. Loan officers are paid a commission or salary for their services by their employers.
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