Know what to expect: Mortgage Brokers and Mortgage Bankers

When you need a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. As both give the same result (a new home), people often confuse the two job types. But as you enter the application process, it can help if you recognize their differences.

About Mortgage Brokers

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. A mortgage broker coordinates 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 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 investor. You partner with a mortgage broker to look at your financial circumstance and lead you to the lender who has the right loan for you. From application to closing, your mortgage broker works with you: submitting your application to several lenders, and coordinating the process with the lender through to the closing of the loan. At closing, the broker's commission is paid by the borrower.

About Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to promote, and process mortgage loans solely on behalf of that particular institution. There may be an assortment of loans types to choose from even though all are products of that specific lender.

A loan officer represents you to the bank or other lending institution. The mortgage banker can guide the borrower through the application, processing and closing of the loan. Either a salary or commission is given to mortgage brokers by their employers.