Mortgage Broker or Mortgage Banker
When you need a mortgage loan, you need to know the difference between a loan officer and a mortgage broker. As both give the same result (a new home), people sometimes confuse the two job types. But as you enter the application process, it can help if you know how they differ.
About Mortgage Brokers
A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan borrower 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 an individual, 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 offers the loans that fits your needs? A mortgage broker will guide you to the right one. 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 broker receives a commission from the borrower at closing.
About Mortgage Bankers
The most important difference between a mortgage broker and a mortgage banker is that a loan officer is employed by a lending institution (a bank, credit union, or others) to process loans solely originated from that institution. While a mortgage banker may offer quite a variety of loans, they are all products from that specific lender.
A loan officer (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lender. From selecting a loan to closing, a loan officer will help you through the process. Loan officers are compensated with a commission or salary for their work by their employers.
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