Know the difference: Mortgage Brokers and Mortgage Bankers

Either a mortgage broker or a mortgage banker may help you when you apply for a mortgage . Because both yield the same result (a new home), people often confuse the two. However, it will be helpful to understand the difference between them so you know what to expect from them as you enter the mortgage process.

Mortgage Brokers

A mortgage broker is a person or group that works as 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 can look at your numbers to find out which lender is the right fit for you. You give your loan application to your broker, who presents it to various lenders. Your mortgage broker then guides your work with the lender of choice until closing. The borrower submits a commission to the broker if the loan closes.

About Mortgage Bankers

Loan officers are representatives of a specific lending institution (such as a bank, credit union, etc.) who process mortgages and other loan programs from their employer alone. There may be a wide range of loans types to draw from even though all are products of that specific lender.

Your mortgage banker will represent you to the bank or other lending institution. The borrower is helped through the entire process, from choosing a loan to closing, by the loan officer. Loan officers may be paid a commission or salary for their work by their employers.

Are you looking for a mortgage loan? We'll be glad to discuss your mortgage needs! Give us a call at 703.255-5810. Ready to get started? Apply Here.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question
By checking the box, you agree that The Mortgage Exchange Service LLC may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply.