Mortgage Broker and Mortgage Banker

Either a mortgage broker or a mortgage banker may work with you when you work on your application for a mortgage loan. People sometimes confuse the two job types since both will give the same outcome: a new home. Yet it is helpful to understand the ways they differ so you have clear expectations of them during the mortgage process.

About Mortgage Brokers

A mortgage broker is an individual or group that works as 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 may be a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. Which lender has the loans that is right for you? A mortgage broker will help you find the best one. You give your mortgage loan application to your broker, who submits it to several lenders. Your mortgage broker then assists your work with the lender of choice until closing. The borrower submits a commission to the broker at closing.

Mortgage Bankers

Mortgage Bankers work for a particular lending institution (such as a bank) who work with mortgages and other lending programs originated by their employer alone. They may have the ability to promote loans to fit many different situations, but all the loans are products from the same lender.

A loan officer (also known as an "account executive" or "loan representative") represents the borrower to the lending institution. The loan officer can walk the borrower through the selection, processing and closing of the loan. Lenders pay their mortgage bankers a commission or salary.

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