Mortgage Broker and Mortgage Banker

When you need a mortgage , you should know the difference between a mortgage broker and a mortgage banker. As a new home is the result of the work of both mortgage broker and mortgage banker, it's common to confuse the two job types. But for the application process, it will help if you know how they are different.

What is a Mortgage Broker?

A mortgage broker is an individual or firm that works as an independent agent for both the mortgage loan borrower and the lender. A mortgage broker coordinates 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 bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. A mortgage broker can look at your numbers to determine which lender is the best fit for you. Your broker will submit your mortgage loan application to a handful of lenders, and works with the lender of choice until the loan closes. When the loan closes, the broker's commission comes from the borrower.

About Loan Officers

Mortgage Bankers are representatives of a specific lending institution (such as a bank) who process mortgages and other loan programs originated by their employer alone. There may be an assortment of loans types to draw from, but all are programs of that particular lender.

A mortgage banker represents you to the bank or other lending institution. The borrower is helped through the entire process, from loan selection to closing, by the mortgage banker. Either a salary or commission is paid to mortgage brokers by their employers.

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