Mortgage Broker and Mortgage Banker

Either a mortgage broker or a loan officer may help you when it comes to finding a mortgage . It's easy to confuse the two since both will produce the same outcome: a new home. However, understanding how they are different is useful to your mortgage process.

Mortgage Brokers

A mortgage broker is an individual or firm that acts as an independent agent for the mortgage loan applicant as well as the lender. A mortgage broker facilitates things between you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even an individual, 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. Which lender has the mortgage loans that is right for you? A mortgage broker will help you find the right one. You give your loan application to your broker, who presents it to one or more lenders. Your mortgage broker then assists your work with the lender of choice until the loan closes. Upon closing, the broker's commission is given by the borrower.

Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ loan officers to market, and process loans solely from that specific institution. There can be a wide range of loans types to choose from although all are products of that particular lender.

A mortgage banker (also called an "account executive" or "loan representative") represents the borrower to the lending institution. From finding a loan program to closing, a loan officer will walk you through the process. Mortgage bankers may be paid a commission or salary for their work by their employers.

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