Mortgage Broker vs. Mortgage Banker
Either a mortgage broker or a loan officer can assist you when it comes to finding a mortgage loan. As a new home is the outcome of the work of both mortgage broker and loan officer, people usually confuse them. But as you enter the application process, it can help if you understand how they differ.
What is a Mortgage Broker?
A mortgage broker is a person or firm that is an independent agent for the mortgage loan borrower as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Which lender has the loans that fits your needs? A mortgage broker will guide you to the right fit. You deliver your mortgage loan application to your broker, who offers it to several lenders. Your mortgage broker then assists your work with the lender chosen until closing. The broker receives a commission from the borrower when the loan closes.
What is a Loan Officer?
Lending Institutions (banks, finance companies, and others) employ loan officers to offer, and process mortgage loans solely originated by that particular institution. They may have the ability to market loans to fit a variety of situations, but all the loans will be products of the same lender.
A mortgage banker represents you to the bank or other lending institution. The borrower is guided through the whole process, from loan selection to closing, by the loan officer. Lending institutions pay their mortgage bankers a commission or salary.
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