San Diego Mortgage, Broker, Loan Officer

Know the difference: Mortgage Brokers and Mortgage Bankers

When you apply for a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Since both a mortgage broker and lending officer will help you buy your new home, people sometimes confuse them. Yet knowing how they are different will be advantageous to the mortgage loan process.

What is a Mortgage Broker?

During the mortgage loan process, an individual or group who is an independent agent for the mortgage loan applicant as well as the lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Which lender offers the loan programs that is best for you? A mortgage broker will lead you to the right fit. From application to closing, your mortgage broker works with you: presenting your mortgage application to several lenders, and coordinating the process with the lender through to the closing of your loan. The broker gets a commission from the borrower at closing.

What is a Mortgage Banker?

Loan officers work for a particular lending institution (such as a bank) who work with mortgages and other loans for their employer alone. While a mortgage banker may market quite a range of loans, they are all products with that one lender, which means your choices of loan products may be limited.

A mortgage banker represents you to the bank or other lending institution. The borrower is walked through the whole process, from finding a loan to closing, by the mortgage banker. Loan officers can be given a commission or salary for their work by their employers.

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