The Difference Between a Mortgage Broker and a Mortgage Banker

choice of two ways -- mortgage broker or mortgage banker

Mortgages are available through mortgage brokers and mortgage bankers, each described as loan officers by the US Bureau of Labor Statistics. Offering home loans from various lenders, mortgage brokers can match an individual or couple with the packages available through any of those institutions. A mortgage broker acts as a liaison between mortgage bankers, who provide loans, and those interested in purchasing real estate. The mortgage banker directly provides the loan. A mortgage banker loans money to individuals and couples for their homes, as a representative of a financial firm such as a bank.

Key distinction: one institution vs. many

A mortgage banker lets loan applicants know about the possible solutions that are provided at her or his organization. She/he can perform a property evaluation and collect financial details, managing the mortgage process for loan applicants and realtors.

A mortgage broker is able to work with whatever lender has the best package for the applicant’s given situation. While bankers are not able to compare loans within their institution to ones outside it, there are no such constraints on a broker. To find the lender and loan package that is the right fit for a particular buyer, the broker asks questions of them or their realtor to understand the borrower’s needs.

Mortgage brokers as guides

Peace of mind is available with a mortgage broker, since she/he can guide you through the volatile mortgage market. Brokers gives you diverse possibilities, so a critical function they serve is to simplify that breadth — to find you the most cost-effective solution via accurate information, derived from the heaps of package options and rate figures.

In their role as your guide, the mortgage broker walks you through all the necessary elements of landing an ideal home loan:

  • instructs you on available financing packages that might make sense;
  • goes over the various costs of the mortgage application with you;
  • discusses how the mortgage process proceeds, from application through closing;
  • informs you about all the mortgage application documents;
  • talks over how the loan will be disbursed;
  • gives you a loan estimate that includes all the fees;
  • stays in touch consistently during the mortgage process;
  • lets you know about lock-in options, in writing;
  • manages your loan’s final closing; and
  • continues to provide advice and support post-closing.

Forming a relationship with a mortgage broker

Are you interested in the wide range of options available through a mortgage broker? At Ted Bougie — First Equity, our goal is to create a lasting relationship with you and continue providing excellent service for many years to come. See our approach.

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