Mortgage Brokers vs. Mortgage Bankers
Do you know the difference between a Mortgage Broker and a Mortgage Banker? Very simple - the Mortgage Banker is the lender whereas the Mortgage Broker represents several lending institutions and is a liaison between the lender and borrower.
Each one has it's benefits:
Brokers:
A Broker works with an individual to process the application. The Broker matches his clients with the lender that best suits his clients needs. He then processes the paperwork through final approval and ultimately funding. The Broker's fees are paid by the lending institution.
Bankers:
Mortgage Bankers are direct lenders working the loans themselves and eliminating the middle man. The mortgage banker approves or rejects the loan themselves and may use an automated underwriting system which could expedite the process. Mortgage Bankers must have a substantial net worth whereas the brokers need only a store front and telephone.
During my business I have found both to be able to get the job done in an expeditious manner. If you have any further questions please do not hesitate to contact me. Thank you for reading my blog and I hope it helps.