Know what to expect: Mortgage Brokers vs. Mortgage Bankers
When it comes to getting a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Since both reap the same result (a new home), it's easy to confuse the two. Yet understanding the ways they differ will be useful to the mortgage process.
About Mortgage Brokers
A mortgage broker (either a group or an individual) is an independent agent for both the mortgage loan borrower and the lender. A mortgage broker facilitates things for 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 investor. Which lender has the loan programs that is right for you? A mortgage broker will guide you to the right one. You deliver your mortgage application to your broker, who submits it to one or more lenders. Your mortgage broker then assists your work with the lender chosen until closing. The broker gets a commission from the borrower upon closing.
About Mortgage Bankers
Loan officers work for a particular lending institution (such as a bank, credit union, etc.) who promote and process mortgages and other loans originated by their company alone. While a loan officer may market quite a variety of loan programs, they all are products with that specific lender.
A loan officer will represent you to the bank or other lending institution. A loan officer will help you through the selection, processing and closing of the loan. Lenders compensate the mortgage bankers with a commission or salary.