Mortgage Broker vs. Mortgage Banker
Either a mortgage broker or a mortgage banker can assist you when you work on your application for a mortgage loan. People often confuse them because both will reap the same outcome: a new home. But as you begin the application process, it will benefit you if you understand their differences.
A mortgage broker is a person or group that is an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Which lender has the loan programs that fits your needs? A mortgage broker will help you find the best fit. Your broker will submit your mortgage application to a handful of lenders, and works with the chosen lender until the loan closes. At closing, the broker's commission is paid by the borrower.
Lending Institutions (banks, finance companies, and others) employ loan officers to market, and process mortgage loans on behalf of that particular institution alone. There may be a wide variety of loans types to draw from although all are products of that specific lender.
Your loan officer will represent you to the bank or other lending institution. From selecting a loan to closing, a loan officer can guide you through the process. Loan officers may be paid a commission or salary for their services by their employers.
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