Know the difference: Mortgage Brokers and Mortgage Bankers

When you need a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. Because both a mortgage broker and mortgage banker will help you buy a new home, people often confuse them. However, knowing the ways they differ will be beneficial to your mortgage process.

Mortgage Brokers

During the mortgage loan process, an individual or group who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Which lender offers the loans that is best for you? A mortgage broker will lead you to the right one. From application to closing, your mortgage broker works with you: offering your mortgage application to several lenders, and walking you with the chosen lender through to closing. Upon closing, the broker's commission is given by the borrower.

Loan Officers

Loan officers represent a particular lending institution (such as a bank, credit union, etc.) who market and process mortgages and other lending programs from their company alone. While a loan officer may offer quite a variety of loan programs, they will be products with that lender alone.

A loan officer (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. From finding a loan program to closing, a loan officer can walk a borrower through the process. Loan officers are compensated with a commission or salary for their services by their employers.

Looking for a mortgage loan? We'd be thrilled to discuss our mortgage offerings! Give us a call today at (334) 285-8850. Ready to get started? Apply Online Now.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question