Richmond Hill Mortgage, Broker, Loan Officer
Know what to expect: Mortgage Brokers vs. Loan Officers
When it comes to locating a mortgage , you should know the difference between a mortgage banker and a mortgage broker. It's common to confuse the two job types since both will give the same outcome: a new home. But as you begin the application process, it can benefit you if you know how they differ.
During the mortgage loan process, an individual or firm who is an independent agent for the mortgage loan applicant as well as the lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. You use a mortgage broker to consider your financial circumstance and find the lender who has the right loan for you. From application to closing, your mortgage broker facilitates your loan process: offering your application to several lenders, and coordinating the process with the lender through to closing. The broker receives a commission from the borrower at closing.
Loan officers represent a particular lending institution (such as a bank, credit union, etc.) who work with mortgages and other loan products for their place of employment alone. Although a mortgage banker may promote quite a variety of loans, they are all programs of that lender alone.
A mortgage banker (also called an "account executive" or "loan representative") represents the borrower to the lending institution. The borrower is guided through the entire process, from finding the loan to closing, by the mortgage banker. Lending institutions pay their mortgage bankers a commission or salary.
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