Mortgage Broker vs. Mortgage Banker
Either a mortgage broker or a loan officer can assist you when it's time to locate a mortgage . It's understandable to confuse the two as both will yield the same outcome: a new home. However, understanding how they are different will be beneficial to the mortgage loan process.
What is a Mortgage Broker?
A mortgage broker is an individual or company that is an independent agent for the mortgage loan applicant as well as 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 a private 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 a private investor. A mortgage broker can review your financial situation to find out which lender is the right fit for your loan needs. From application to closing, your mortgage broker works with you: submitting your loan application to a number of lenders, and walking you with the chosen lender through to the closing of your loan. The broker gets a commission from the borrower if the loan closes.
What is a Mortgage Banker?
Mortgage Bankers represent a particular lending institution (such as a bank, credit union, etc.) who offer and process mortgages and other lending programs for their place of employment alone. While a mortgage banker may offer quite a variety of loans, they will be products of that lender alone.
Also known as a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lending institution. From choosing a loan to closing, a mortgage banker can help the borrower through the process. Loan officers can be paid a commission or salary for their work by their employers.