Hollywood Mortgage, Broker, Loan Officer
Know the difference: Mortgage Brokers vs. Mortgage Bankers
When it comes to locating a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. People usually confuse them because both will yield the same result: a new home. However, it will be helpful to recognize the ways they differ so you know what to expect from them during the mortgage application process.
About Mortgage Brokers
A mortgage broker (either a firm or an individual) is an independent agent for the mortgage loan borrower as well as the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. A mortgage broker can look at your finances to find out which lender is the best fit for your loan needs. From application to closing, your mortgage broker works with you: offering your loan application to several lenders, and walking you with the chosen lender through to the closing of your loan. If the loan closes, the broker's commission is given by the borrower.
What is a Mortgage Banker?
The biggest difference between a mortgage broker and a loan officer is that the latter works for a lending institution (a bank, credit union, or others) to process loans solely originated from the programs of that institution. There may be an assortment 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 mortgage banker acts of behalf of the borrower to the lender. The borrower is guided through the whole process, from loan selection to closing, by the loan officer. Mortgage bankers may be given a commission or salary for their services by their employers.
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