Mortgage Broker and Mortgage Banker

Either a mortgage broker or a mortgage banker may help you when you're looking to get a mortgage . People often confuse the two as both will give the same outcome: a new home. Yet knowing the ways they differ will be useful to the mortgage loan process.

About Mortgage Brokers

A mortgage broker (either a firm or an individual) is an independent agent for both the mortgage loan applicant and the lender. A mortgage broker facilitates 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 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. A mortgage broker will look at your finances to find out which lender is the right fit for you. From application to closing, your mortgage broker facilitates your loan process: offering your loan application to a number of 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 Loan Officers

Mortgage Bankers represent a particular lending institution (such as a bank) who process mortgages and other loan programs for their employer alone. There may be a wide range of loans types to draw from although all are programs of that specific lending institution.

Also known as a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lender. The mortgage banker can help you through the selection, processing and closing of the loan. Loan officers are compensated with a commission or salary for their work by their employers.