Exploring options for a mortgage can be daunting. There are so many questions that we face.
Who do you choose?
Who can you trust?
What's the best option?
Chris Harding, Senior Loan Officer at Northeast Equitable Mortage, broke down the differences between a broker, a banker
A mortgage broker is a middle person or “matchmaker” who represents the mortgage loan products of many lenders. If approved, your loan will usually be shifted to a mortgage service provider.
Like many sales professionals, mortgage brokers charge a commission for their services. Some mortgage brokers profit by writing costs into the loan. In the aftermath of the housing collapse, many banks stopped working with mortgage brokerage companies.
A mortgage banker is a company, individual or institution that originates mortgages, and uses their own money to fund the loan. After a mortgage is originated, a mortgage banker might sell the mortgage to an investor.
A mortgage banker’s primary business is to earn the fees associated with loan origination. Mortgage bankers are limited in their choice of loan options and may be restricted by offering only their own loan programs.