The Difference Between a Mortgage Banker and a Mortgage Broker
A mortgage banker and a mortgage broker both help borrowers secure home loans, but they operate differently:
Mortgage Banker
* Works for a bank or lending institution that funds loans directly.
* Uses their own money or credit to lend to borrowers.
* Manages the entire loan process in-house, from application to closing.
* May offer faster loan processing since they control the underwriting.
* Limited to the loan products of their institution.
Mortgage Broker
* Acts as an intermediary between borrowers and multiple lenders.
* Does not fund loans directly; instead, they help borrowers find the best loan from different lenders.
* May have access to a wider range of loan products since they work with multiple banks and lenders.
* Can often secure better rates or terms by shopping around.
* Earns a commission from the lender or borrower upon loan closing.
Key Difference Between a Mortgage Banker and a Mortgage Broker
A mortgage banker lends their own money, while a mortgage broker connects borrowers to lenders but does not fund loans themselves.
