Mortgage Broker vs. Mortgage Banker
When you need a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Because both reap the same outcome (a new home), it's common to confuse the two job types. Yet it will be helpful to recognize how they differ so you have clear expectations of them as you enter the mortgage process.
During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. A mortgage broker facilitates things for you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation 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. You use a mortgage broker to examine your financial circumstance and lead you to the lender who has the best mortgage loan for you. You give your application to your broker, who offers it to various lenders. Your mortgage broker then assists your work with the lender of choice until the loan closes. The broker receives a commission from the borrower upon closing.
What is a Mortgage Banker?
Lending Institutions (banks, finance companies, and others) employ mortgage bankers to offer, and process mortgage loans originated by that particular institution alone. Although a mortgage banker may offer quite a range of loan programs, they will be products from that specific lender.
A loan officer (also known as an "account executive" or "loan representative") represents the borrower to the lender. From selecting a loan product to closing, a loan officer will walk a borrower through the process. Either a salary or commission is given to mortgage brokers by their employers.
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