915-274-3371 Colorado Springs Mortgage, Broker, Loan Officer

Mortgage Broker and Loan Officer

When it comes to finding a mortgage , you should know the difference between a mortgage banker and a mortgage broker. It's common to confuse them since both will produce the same result: a new home. But for the application process, it will help if you know how they differ.

What is a Mortgage Broker?

A mortgage broker (either a firm or an individual) is an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Which lender offers the loan programs that fits your needs? A mortgage broker will lead you to the right one. Your broker will present your mortgage loan application to several lenders, and works with the lender of choice until closing. The borrower gives a commission to the broker when the loan closes.

About Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to market, and process loans originated by that particular institution alone. There may be a wide range of loans types to choose from, but all are products of that particular lender.

Also known as a "loan representative" or "account executive," a mortgage banker acts of behalf of the borrower to the lender. From choosing a loan product to closing, a mortgage banker will help a borrower through the process. Mortgage bankers can be compensated with a commission or salary for their services by their employers.