Know the difference: Mortgage Brokers and Mortgage Bankers
Either a mortgage broker or a mortgage banker can work with you when it comes to getting a mortgage . Because a new home is the result of the work of both mortgage broker and mortgage banker, people can confuse the two. However, knowing how they are different is advantageous to your mortgage process.
What is a Mortgage Broker?
During the mortgage loan process, an individual or group who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. A mortgage broker coordinates 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, 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 analyze your numbers to determine which lender is the best fit for your loan needs. From application to closing, your mortgage broker facilitates your loan process: presenting your application to several lenders, and walking you with the chosen lender through to closing. The broker gets a commission from the borrower if the loan closes.
About Loan Officers
Loan officers represent a particular lending institution (such as a bank) who market and process mortgages and other loan products originated by their company alone. There may be a variety of loans types to choose from although all are programs of that specific lender.
Also known as a "loan representative" or "account executive," a mortgage banker acts of behalf of the borrower to the lending institution. The borrower is guided through the whole process, from choosing the loan to closing, by the loan officer. Lenders pay their loan officers a salary or commission.
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