Mortgage Broker and Loan Officer
When you apply for a mortgage , you should know the difference between a mortgage broker and a mortgage banker. As a new home is the outcome of the work of both mortgage broker and mortgage banker, it's common to confuse them. But for your application process, it will benefit you if you recognize their differences.
What is a Mortgage Broker?
During the mortgage loan process, an individual or company who is an independent agent for the mortgage loan applicant as well as the lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. You use a mortgage broker to analyze your financial situation and lead you to the lender who has the best mortgage loan for you. You give your application to your broker, who offers it to one or more lenders. Your mortgage broker then guides your work with the lender chosen until closing. The borrower gives a commission to the broker upon closing.
About Mortgage Bankers
Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process mortgage loans solely originated by that particular institution. Although a mortgage banker may offer quite a range of loans, they all are programs of that one lender.
Your mortgage banker will represent you to the bank or other lending institution. The loan officer can help the borrower through the selection, processing and closing of the loan. Either a salary or commission is paid to loan officers by their employers.
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