Know what to expect: Mortgage Brokers and Mortgage Bankers

Either a mortgage broker or a mortgage banker can assist you when you work on your application for a mortgage . Because both a mortgage broker and mortgage banker will help you fund your new home, it's easy to confuse them. However, it is helpful to understand how they differ so you know what to expect from them during the mortgage application process.

About Mortgage Brokers

A mortgage broker is a person or company that serves as an independent agent for both the mortgage loan borrower and the lender. 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. Which lender has the mortgage loans that is best for you? A mortgage broker will help you find the best fit. Your broker will offer your mortgage loan application to one or more lenders, and works with the lender of choice until the loan closes. The borrower gives a commission to the broker at closing.

Mortgage Bankers

Mortgage Bankers represent a particular lending institution (such as a bank, credit union, etc.) who offer and process mortgages and other loan programs for their company alone. They may be able to market loans to fit a variety of situations, but all the loans are programs of the same lender.

A mortgage banker represents you to the bank or other lending institution. From finding a loan program to closing, a mortgage banker will guide the borrower through the process. Either a salary or commission is paid to loan officers by their employers.

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