Know what to expect: Mortgage Brokers vs. Mortgage Bankers
When you're looking to get a mortgage loan, you need to know the difference between a mortgage banker and a mortgage broker. Since both a mortgage broker and mortgage banker can help you buy your new home, it's easy to confuse them. However, it will be beneficial to recognize the difference between them so you have clear expectations of them during the mortgage application process.
About Mortgage Brokers
A mortgage broker is someone or firm that acts as an independent agent for the mortgage loan borrower as well as the lender. A mortgage broker facilitates 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 an individual investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. A mortgage broker will look at your financial situation to determine which lender is the right fit for you. From application to closing, your mortgage broker works with you: presenting your mortgage application to a number of lenders, and walking you with the chosen lender through to the closing of your loan. The borrower pays a commission to the broker upon closing.
About Mortgage Bankers
Mortgage Bankers represent a particular lending institution (such as a bank, credit union, etc.) who promote and process mortgages and other loans from their company alone. Although a mortgage banker may promote quite a range of loan programs, they are all programs of that lender alone.
Also called 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 given to loan officers by their employers.
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