Know what to expect: Mortgage Brokers and Loan Officers
When you apply for a mortgage loan, you should know the difference between a mortgage banker and a mortgage broker. As a new home is the result of the work of both mortgage broker and mortgage banker, it's easy to confuse the two. Yet recognizing how they are different will be helpful to your mortgage process.
What is a Mortgage Broker?
A mortgage broker (either a company 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 can be a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. Which lender offers the loans that fits your needs? A mortgage broker will guide you to the right one. Your broker will offer your mortgage application to various lenders, and works with the lender of choice until the loan closes. The broker gets a commission from the borrower when the loan closes.
About Mortgage Bankers
Mortgage Bankers are representatives of a particular lending institution (such as a bank, credit union, etc.) who work with mortgages and other lending programs originated by their place of employment alone. They may have the ability 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 entire process, from loan selection to closing, by the mortgage banker. Mortgage bankers can be compensated with a commission or salary for their work by their employers.
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