When you're looking to get a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker.People often confuse the two job types even though both will glean the same results: a new home. However, it is important to understand the difference between the two types of jobs so you know what to expect from them during the mortgage application process.
Mortgage bankers fund loans with their own money. They provide in-house underwriting, so your file never leaves their office. Since they are not a middle man in the transaction the approve and fund loan locally, without having to send the file to the lender for approval.
Mortgage brokers is
an individual or firm that acts as an independent agent for both the borrower and the lender of a mortgage loan.
Mortgage brokers are the middle man between you and the lending institution. A mortgage broker will analyze your financial situation to determine which lender is the best fit for your loan needs. He or she will submit your mortgage application to one or more lenders in order to sell it, and works with the chosen lender until the loan closes. He or she receives a commission from the borrower if the loan closes.
Why deal with a middle man when you deal directly with the lender !
