Know what to expect: Mortgage Brokers and Mortgage Bankers
When you apply for a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. Since both give the same outcome (a new home), people can confuse the two job types. Yet it is beneficial to understand the difference between them so you know what to expect from them during your 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. 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 credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. Which lender offers the loans that is best for you? A mortgage broker will help you find the best one. You deliver your loan application to your broker, who offers it to various lenders. Your mortgage broker then assists your work with the lender chosen until the loan closes. The broker gets a commission from the borrower if the loan closes.
What is a Mortgage Banker?
Loan officers work for a specific lending institution (such as a bank, credit union, etc.) who process mortgages and other lending programs on behalf of their place of employment alone. There may be a wide range of loans types to choose from even though all are programs of that specific lender.
A loan officer represents you to the bank or other lending institution. The borrower is guided through the entire process, from choosing the loan to closing, by the loan officer. Either a salary or commission is given to mortgage brokers by their employers.