Mortgage Broker and Mortgage Banker
When you need a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. Because a new home is the outcome of the work of both mortgage broker and loan officer, it's easy to confuse the two. But as you begin your application process, it can help if you understand how they differ.
A mortgage broker (either a firm or an individual) is an independent agent for both the mortgage loan applicant and the lender. 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, private 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. A mortgage broker will consider your numbers to find out which lender is the best fit for your loan needs. You deliver your mortgage loan application to your broker, who presents it to a number of lenders. Your mortgage broker then assists your work with the lender of choice until the closing of the loan. The borrower gives a commission to the broker at closing.
About Loan Officers
The main 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 from that institution. They may be able to market loans to fit many different situations, but all the loans will be programs of the same lender.
Your loan officer will represent you to the bank or other lending institution. The borrower is helped through the whole process, from selecting a loan to closing, by the mortgage banker. Lending institutions compensate the mortgage bankers with a commission or salary.
In the market for a mortgage loan? We'll be glad to talk about your mortgage needs! Call us at (405) 615-8543. Ready to begin? Apply Here