Know the difference: Mortgage Brokers and Mortgage Bankers
When it comes to applying for a mortgage , you need to know the difference between a mortgage broker and a loan officer. People usually confuse the two job types because both will give the same result: a new home. But for your application process, it will benefit you if you know how they differ.
What is a Mortgage Broker?
A mortgage broker is someone or firm that works as an independent agent for the mortgage loan applicant as well as the lender. A mortgage broker facilitates things for 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 investor. Which lender has the mortgage loans that fits your needs? A mortgage broker will lead you to the best fit. You deliver your mortgage application to your broker, who submits it to several lenders. Your mortgage broker then guides your work with the lender of choice until the closing of the loan. The borrower pays a commission to the broker at closing.
What is a Mortgage Banker?
Lending Institutions (banks, finance companies, and others) employ loan officers to offer, and process mortgage loans solely on behalf of that particular institution. They may have the ability to offer loans to fit many different situations, but all the loans are programs of the same lender.
Your mortgage banker represents you to the bank or other lending institution. From choosing a loan program to closing, a mortgage banker will help the borrower through the process. Lending institutions compensate the mortgage bankers with a salary or commission.
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