Mortgage Broker or Mortgage Banker

When it's time to locate a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. Because both a mortgage broker and lending officer will help you fund your new home, people often confuse them. However, it will be helpful to recognize the difference between the two jobs so you know what to expect from them as you enter the mortgage application process.

Mortgage Brokers

During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. A mortgage broker facilitates 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 a private investor. A mortgage broker can review your numbers to determine which lender is the best fit for you. You deliver your loan application to your broker, who offers it to various lenders. Your mortgage broker then assists your work with the lender chosen until the closing of the loan. At closing, the broker's commission is paid by the borrower.

About Mortgage Bankers

Mortgage Bankers are representatives of a specific lending institution (such as a bank, credit union, etc.) who market and process mortgages and other loan products from their company alone. There can be a wide range of loans types to choose from, but all are programs of that specific lending institution.

Also called a "loan representative" or "account executive," a loan officer represents the borrower to the lending institution. From finding a loan product to closing, a loan officer will guide you through the process. Loan officers will be given a commission or salary for their work by their employers.