Mortgage Broker or Mortgage Banker

When you apply for a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. As both a mortgage broker and mortgage banker can help you purchase a new home, it's understandable to confuse the two. Yet it will be valuable to understand the difference between the two jobs so you have clear expectations of them during the mortgage process.

Mortgage Brokers

During the mortgage loan process, an individual or group who is an independent agent for the mortgage loan borrower as well as the lender is a mortgage broker. 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 examine your financial situation to find out which lender is the best fit for you. You give your mortgage loan application to your broker, who offers it to a number of lenders. Your mortgage broker then guides your work with the lender chosen until closing. Upon closing, the broker's commission comes from the borrower.

About Loan Officers

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

Also known as a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lender. From choosing a loan to closing, a mortgage banker will help you through the process. Loan officers will be paid a commission or salary for their services by their employers.

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