469-322-4391 TEXAS Mortgage, Broker, Loan Officer
Know what to expect: Mortgage Brokers vs. Mortgage Bankers
Either a mortgage broker or a loan officer can work with you when you work on your application for a mortgage loan. Because both reap the same result (a new home), it's common to confuse the two. However, it will be valuable to understand the difference between them so you know what to expect from them during the mortgage process.
A mortgage broker is a person or firm that is an independent agent for the mortgage loan borrower as well as the lender. A mortgage broker coordinates things between you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private 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. You partner with a mortgage broker to review your financial circumstance and find the lender who has the right loan for you. From application to closing, your mortgage broker facilitates your loan process: offering your loan application to a number of lenders, and coordinating the process with the lender through to the closing of your loan. The borrower pays a commission to the broker when the loan closes.
What is a Loan Officer?
The most important difference between a mortgage broker and a loan officer is that a mortgage banker works for a lending institution (a bank, credit union, or others) to market and process loans only originated from the programs 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.
Also called a "loan representative" or "account executive," a mortgage banker acts of behalf of the borrower to the lending institution. From finding a loan to closing, a mortgage banker will walk a borrower through the process. Either a salary or commission is given to loan officers by their employers.