Mortgage Broker and Mortgage Banker

Either a mortgage broker or a mortgage banker may assist you when you work on your application for a mortgage . People can confuse the two job types as both will reap the same outcome: a new home. However, it will be helpful to recognize the difference between the two jobs so you have clear expectations of them during your mortgage process.

Mortgage Brokers

A mortgage broker (either a company or an individual) is an independent agent for both the mortgage loan borrower and the lender. 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 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 an individual investor. A mortgage broker can consider 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: presenting your loan application to several lenders, and walking you with the chosen lender through to the closing of your loan. At closing, the broker's commission is given by the borrower.

Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to offer, and process loans on behalf of that specific institution alone. They may be able to market loans to fit many different situations, but all the loans will be programs from the same lender.

A mortgage banker (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. From choosing a loan product to closing, a mortgage banker will guide a borrower through the process. Either a salary or commission is paid to loan officers by their employers.