Mortgage Broker vs. Loan Officer
When you apply for a mortgage , you need to know the difference between a mortgage broker and a mortgage banker. As a new home is the result of the work of both mortgage broker and mortgage banker, people can confuse the two. Yet it is useful to recognize the ways they differ so you know what to expect from them as you enter the mortgage application process.
About Mortgage Brokers
During the mortgage loan process, an individual or firm who is an independent agent for the mortgage loan applicant as well as the lender is a mortgage broker. A mortgage broker facilitates things between you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. Which lender has the loans that is right for you? A mortgage broker will help you find the best one. From application to closing, your mortgage broker works with you: offering your loan application to a number of lenders, and coordinating the process with the lender through to closing. If the loan closes, the broker's commission comes from the borrower.
About Mortgage Bankers
Mortgage Bankers work for a specific lending institution (such as a bank, credit union, etc.) who process mortgages and other loan programs for their employer alone. Although a mortgage banker may promote quite a variety of loan programs, they are all products of that one lender.
A loan officer (also known as an "account executive" or "loan representative") represents the borrower to the lending institution. A loan officer can guide the borrower through the application, processing and closing of the loan. Either a salary or commission is given to loan officers by their employers.
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