Either a mortgage broker or a loan officer can help you when you apply for a mortgage loan. As a new home is the outcome of the work of both mortgage broker and loan officer, people frequently confuse the two. But for the application process, it will help if you recognize how they differ.
A mortgage broker is a person or firm that works as 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, finance company, mortgage corporation or even a private investor. Which lender offers the loans that is best for you? A mortgage broker will lead you to the right one. From application to closing, your mortgage broker facilitates your loan process: submitting your mortgage application to a number of lenders, and walking you with the chosen lender through to closing.
The biggest difference between a mortgage broker and a mortgage banker is that the latter is employed by a lending institution (a bank, credit union, or others) to promote and process loans only originated from the products of that institution. They may have the ability to promote loans to fit a variety of situations, but all the loans are programs from the same lender. Less options than a Mortgage Broker & typically higher fees than the mortgage broker as well.
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