Mortgage Brokers vs. Mortgage Bankers

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Real Estate

Mortgage Brokers vs. Mortgage Bankers

Is there a difference? Actually, yes. 

The benefit of working with a mortgage broker: Mortgage brokers are independent and search for loans that best fit the customer’s needs, not their employer's needs. Mortgage brokers also match clients with lenders and walk the paperwork through the process until it has received final approval and funding. Who pays the mortgage broker? Luckily, mortgage broker fees are paid by the lender, so great new if you are a Buyer!

The benefit of working with a mortgage banker: Mortgage bankers are direct lenders. What this means is that there is no middleman, therefore allowing mortgage bankers to approve or reject loans. By doing so, sometimes this may speed up the loan process. However, mortgage brokers must have a substantial net worth if they are to survive. A little competition is healthy too! Because mortgage brokers and mortgage bankers are competing, mortgage bankers offer competitive rates.

- Teresa Scheiwe