Mortgage Broker and Loan Officer
When you're looking to get a mortgage loan, you should know the difference between a mortgage banker and a mortgage broker. Since a new home is the result of the work of both mortgage broker and mortgage banker, it's common to confuse the two. But for your application process, it can help if you understand they ways they differ.
What is a Mortgage Broker?
A mortgage broker is someone or firm that is an independent agent for both the mortgage loan applicant and the lender. A mortgage broker coordinates things for you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Which lender has the mortgage loans that is right for you? A mortgage broker will help you find the best one. Your broker will submit your mortgage loan application to various lenders, and works with the lender of choice until the loan closes. The borrower pays a commission to the broker upon closing.
Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process loans on behalf of that specific institution alone. Although a loan officer may promote quite a range of loan programs, they all are programs with that lender alone.
Your loan officer will represent you to the bank or other lending institution. The borrower is walked through the whole process, from loan selection to closing, by the mortgage banker. Mortgage bankers are given a commission or salary for their services by their employers.
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