Mortgage Broker vs. Mortgage Banker

When it comes to getting a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. As a new home is the outcome of the work of both mortgage broker and loan officer, people frequently confuse them. However, recognizing how they differ will be advantageous to the mortgage process.

Mortgage Brokers

A mortgage broker (either a firm or an individual) is an independent agent for both the mortgage loan applicant and the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Which lender has the loans that is best for you? A mortgage broker will help you find the right fit. Your broker will present your mortgage application to various lenders, and works with the chosen lender until closing. The borrower pays a commission to the broker at closing.

What is a Mortgage Banker?

Mortgage Bankers are representatives of a particular lending institution (such as a bank) who market and process mortgages and other loan products for their company alone. There can be an assortment of loans types to choose from even though all are products of that particular lender.

Your loan officer represents you to the bank or other lending institution. The borrower is helped through the entire process, from loan selection to closing, by the loan officer. Mortgage bankers are given a commission or salary for their services by their employers.