Bloomfield Hills Mortgage, Broker, Loan Officer
Know the difference: Mortgage Brokers and Loan Officers
When you're looking to get a mortgage loan, you should know the difference between a mortgage broker and a mortgage banker. Because a new home is the result of the work of both mortgage broker and loan officer, people often confuse the two job types. Yet knowing the ways they differ will be beneficial to your mortgage loan process.
What is a Mortgage Broker?
During the mortgage loan process, an individual or company who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. A mortgage broker coordinates things for you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Which lender offers the loans that fits your needs? A mortgage broker will help you find the right fit. You give your mortgage loan application to your broker, who submits it to one or more lenders. Your mortgage broker then helps you work with the lender chosen until closing. The broker gets a commission from the borrower upon closing.
Mortgage Bankers work for a specific lending institution (such as a bank, credit union, etc.) who market and process mortgages and other lending programs originated by their employer alone. They may be able to market loans to fit a variety of situations, but all the loans are programs of the same lender.
Your mortgage banker will represent you to the bank or other lending institution. A loan officer can guide the borrower through the application, processing and closing of the loan. Mortgage bankers will be given a commission or salary for their work by their employers.
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