Know the difference: Mortgage Brokers and Loan Officers
When you're looking to get a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. Since both give the same outcome (a new home), it's understandable to confuse them. But for your application process, it will benefit you if you understand their differences.
About Mortgage Brokers
During the mortgage loan process, an individual or firm 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 may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Which lender offers the loans that fits your needs? A mortgage broker will help you find 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. At closing, the broker's commission comes from the borrower.
What is a Mortgage Banker?
Lending Institutions (banks, finance companies, and others) employ mortgage bankers to offer, and process mortgage loans solely originated by that specific institution. There may be an assortment of loans types to choose from even though all are products of that particular lender.
A mortgage banker (also known as an "account executive" or "loan representative") represents the borrower to the lending institution. From finding a loan to closing, a mortgage banker will guide a borrower through the process. Mortgage bankers can be given a commission or salary for their services by their employers.
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