Know what to expect: Mortgage Brokers vs. Mortgage Bankers
When it's time to get a mortgage , you should know the difference between a mortgage broker and a mortgage banker. Since both give the same result (a new home), people usually confuse them. Yet it will be valuable to recognize the difference between the two jobs so you know what to expect from them during your mortgage process.
During the mortgage loan process, an individual or company who is an independent agent for the mortgage loan borrower as well as the lender is a mortgage broker. Your mortgage broker will stand as facilitator 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 mortgage loans that fits your needs? A mortgage broker will guide you to the best one. Your broker will submit your mortgage application to one or more lenders, and works with the chosen lender until closing. Upon closing, the broker's commission comes from the borrower.
About Mortgage Bankers
The biggest difference between a mortgage broker and a mortgage banker is that the latter works on behalf of a lending institution (a bank, credit union, or others) to process loans only from that institution. They may have the ability to offer loans to fit many different situations, but all the loans are programs of the same lender.
A mortgage banker represents you to the bank or other lending institution. The borrower is helped through the whole process, from loan selection to closing, by the mortgage banker. Lending institutions compensate their loan officers with a commission or salary.
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