Rancho Santa Margarita Mortgage, Broker, Loan Officer

Mortgage Broker and Loan Officer

When you apply for a mortgage , you need to know the difference between a mortgage banker and a mortgage broker. Since a new home is the outcome of the work of both mortgage broker and mortgage banker, it's common to confuse the two. However, understanding the differences between them is advantageous to the mortgage loan process.

About Mortgage Brokers

A mortgage broker is a person or group that is an independent agent for both the mortgage loan borrower and the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. A mortgage broker will look at your numbers to find out which lender is the best fit for your loan needs. From application to closing, your mortgage broker works with you: offering your loan application to a number of lenders, and coordinating the process with the lender through to the closing of your loan. The broker is given a commission from the borrower at closing.

About Mortgage Bankers

The main difference between a mortgage broker and a mortgage banker is that a loan officer works on behalf of a lending institution (a bank, credit union, or others) to process loans solely from that institution. They may have the ability to offer loans to fit many different situations, but all the loans are programs from the same lender.

A mortgage banker (also known as an "account executive" or "loan representative") represents the borrower to the lender. The borrower is walked through the entire process, from loan selection to closing, by the loan officer. Lenders pay their mortgage bankers a commission or salary.

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