Mortgage Broker vs. Mortgage Banker
When you're looking to get a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. People can confuse the two since both will reap the same outcome: a new home. Yet it will be useful to understand the ways they differ so you have clear expectations of them as you enter your mortgage application process.
About Mortgage Brokers
A mortgage broker is an individual or firm that works as an independent agent for both the mortgage loan applicant and the lender. A mortgage broker facilitates things for you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even a 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 a private investor. You use a mortgage broker to consider your financial situation and lead you to the lender who has the right mortgage loan for you. You deliver your application to your broker, who submits it to a number of lenders. Your mortgage broker then assists your work with the lender chosen until the loan closes. The broker gets a commission from the borrower at closing.
About Mortgage Bankers
The main difference between a mortgage broker and a mortgage banker is that a mortgage banker works for a lending institution (a bank, credit union, or others) to process loans solely from that institution. There may be a wide range of loans types to choose from although all are programs of that specific lender.
A loan officer (also known as an "account executive" or "loan representative") represents the borrower to the lending institution. From selecting a loan to closing, a mortgage banker will walk a borrower through the process. Lenders pay their mortgage bankers a salary or commission.
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