Hearthside Happenings

The Broker, The Banker, and The Mortgage Lender

Oh my! Who do you choose?
Posted: September 13, 2018 by Rebecca Nutt

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 and a mortgage lender to make it easier for you to decipher. Let's take a look at his breakdown: 

Mortgage Broker
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.

Mortgage Banker
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.

Mortgage Lender
Lenders are the licensed professionals who give you the money directly to fund your loan, which can lead to more personalized service and potential financial savings.  When you use a local mortgage lender, you will personally know who you’re dealing with which can result in a better customer experience.

From document collection to loan application, and from underwriting to final approval, the process is traditionally all done under one roof, which can help alleviate any challenges that may arise, leading to a smooth and timely closing.

Do you have more questions about mortgages and loans? Contact Chris Harding today! 

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