Scottsdale Mortgage, Broker, Loan Officer

Mortgage Broker and Loan Officer

When you work on your application for a mortgage , you should know the difference between a mortgage banker and a mortgage broker. As both reap the same result (a new home), it's understandable to confuse the two job types. However, it is valuable to know how they differ so you have clear expectations of them as you enter your mortgage process.

Mortgage Brokers

During the mortgage loan process, an individual or group who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. A mortgage broker coordinates things between you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even an individual 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 an individual, private investor. A mortgage broker will review your financial situation to determine which lender is the right fit for your loan needs. Your broker will submit your mortgage application to one or more lenders, and works with the lender of choice until the loan closes. If the loan closes, the broker's commission is given by the borrower.

Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to offer, and process loans originated by that specific institution alone. They may be able to offer loans to fit a variety of situations, but all the loans will be programs of the same lender.

A mortgage banker (also known as an "account executive" or "loan representative") represents the borrower to the lender. The borrower is guided through the whole process, from choosing the loan to closing, by the loan officer. Lending institutions pay their mortgage bankers a salary or commission.

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