Mortgage Broker and Loan Officer
When you need a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. Since a new home is the outcome of the work of both mortgage broker and mortgage banker, people frequently confuse the two job types. Yet recognizing the differences between them is beneficial to your mortgage loan process.
What is a Mortgage Broker?
A mortgage broker (either a firm or an individual) is an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. You work with a mortgage broker to look at your financial circumstance and lead you to the lender who has the best loan program for you. You deliver your loan application to your broker, who submits it to a number of lenders. Your mortgage broker then helps you work with the lender chosen until the closing of the loan. If the loan closes, the broker's commission comes from the borrower.
Mortgage Bankers work for a specific lending institution (such as a bank, credit union, etc.) who market and process mortgages and other lending programs from their employer alone. They may have the ability to promote loans to fit many different situations, but all the loans will be products of the same lender.
Also known as a "loan representative" or "account executive," a mortgage banker acts of behalf of the borrower to the lender. A mortgage banker can help you through the application, processing and closing of the loan. Either a salary or commission is paid to mortgage brokers by their employers.
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