Mortgage Broker or Mortgage Banker

When it's time to find a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Because both a mortgage broker and lending officer will help you fund your new home, it's easy to confuse the two. But as you enter the application process, it will help if you recognize how they differ.

About Mortgage Brokers

During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. A mortgage broker facilitates things between 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 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. You work with a mortgage broker to look at your financial circumstance and lead you to the lender who has the right loan program for you. You give your loan application to your broker, who offers it to various lenders. Your mortgage broker then guides your work with the lender of choice until closing. The broker gets a commission from the borrower upon closing.

About Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ loan officers to offer, and process loans originated by that particular institution alone. There can be an assortment of loans types to choose from, but all are products of that specific lending institution.

Also called a "loan representative" or "account executive," a mortgage banker acts of behalf of the borrower to the lender. The borrower is walked through the whole process, from loan selection to closing, by the loan officer. Either a salary or commission is paid to mortgage brokers by their employers.

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