Mortgage Broker vs. Mortgage Banker

When it's time to get a mortgage loan, you need to know the difference between a mortgage broker and a mortgage banker. People frequently confuse these since both will reap the same outcome: a new home. But as you enter the application process, it can benefit you if you recognize their differences.

About Mortgage Brokers

During the mortgage loan process, an individual or company who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. A mortgage broker coordinates things between you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even a private 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, private investor. A mortgage broker will analyze your numbers to determine which lender is the best fit for your loan needs. You deliver your mortgage loan application to your broker, who submits it to one or more lenders. Your mortgage broker then guides your work with the lender chosen until the closing of the loan. The borrower gives a commission to the broker at closing.

Loan Officers

Mortgage Bankers work for a particular lending institution (such as a bank, credit union, etc.) who work with mortgages and other loans for their company alone. While a mortgage banker may offer quite a variety of loan programs, they will be programs of that lender alone.

Also known as a "loan representative" or "account executive," a mortgage banker represents the borrower to the lending institution. The borrower is guided through the entire process, from loan selection to closing, by the loan officer. Either a salary or commission is paid to mortgage brokers by their employers.

In the market for a new mortgage? We will be glad to assist you! Give us a call today at 4056158543. Ready to begin? Apply Now.

Executive Lending Group

A Division of 1st Capital Mortgage LLC

2401 Tee Circle, STE 102B
Norman, OK 73069