Know what to expect: Mortgage Brokers and Mortgage Bankers

Either a mortgage broker or a mortgage banker may assist you when you need a mortgage . As a new home is the result of the work of both mortgage broker and loan officer, it's common to confuse them. However, recognizing how they differ will be useful to your mortgage process.

Mortgage Brokers

During the mortgage loan process, an individual or firm who is an independent agent for the mortgage loan applicant as well as the lender is a mortgage broker. A mortgage broker coordinates things for you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even a 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 an individual investor. A mortgage broker can analyze your finances to find out which lender is the best fit for your loan needs. From application to closing, your mortgage broker facilitates the loan process: offering your mortgage application to several lenders, and coordinating the process with the lender through to closing. The borrower submits a commission to the broker upon closing.

About Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to promote, and process mortgage loans from that specific institution alone. While a loan officer may market quite a variety of loan programs, they are all programs with that specific lender.

Also called a "loan representative" or "account executive," a mortgage banker acts of behalf of the borrower to the lending institution. From choosing a loan program to closing, a mortgage banker can help you through the process. Lenders give their loan officers a salary or commission.