Mortgage Broker or Loan Officer
When you need a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. People usually confuse the two job types as both will yield the same result: a new home. But as you begin the application process, it will benefit you if you understand their differences.
What is a Mortgage Broker?
A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan applicant as well as 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. A mortgage broker will review your finances to find out which lender is the best fit for your loan needs. From application to closing, your mortgage broker works with you: presenting your loan application to several lenders, and walking you with the chosen lender through to the closing of your loan. Upon closing, the broker's commission is paid by the borrower.
About Mortgage Bankers
Mortgage Bankers work for a particular lending institution (such as a bank, credit union, etc.) who offer and process mortgages and other lending programs from their employer alone. Although a loan officer may promote quite a variety of loans, they are all products with that one lender.
Your loan officer represents you to the bank or other lending institution. The borrower is walked through the whole process, from loan selection to closing, by the loan officer. Either a salary or commission is paid to mortgage brokers by their employers.
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