All You Need To Know About Mortgage Brokers And Mortgage Bankers

In previous years, when you needed to apply for a mortgage loan it was assumed that you would head to the local bank or the institution where you kept your savings and checking accounts. I am unsure when this changed, but in modern society, the procedure to obtain a mortgage loan is quite different. While the majority of banks and credit unions continue to have a market for mortgage origination, a large amount of market share is now occupied by companies whose business is specifically focused on the application of mortgages. This article will examine both organisations and look at mortgage brokers and mortgage bankers.

What Is A Mortgage Banker?

When conducting business with a mortgage banker, you will be dealing directly with the company providing your home loan. The term ‘direct lender’ may be used to describe the mortgage banker; however, this agent is not the mortgage service you will use to make your mortgage payments. It is the mortgage banker’s responsibility to determine if your loan application meets the guidelines of approval or rather whether you receive the loan or not.

What Is A Mortgage Broker?

The mortgage broker will typically provide similar services as the mortgage banker but using a different approach. Unlike the mortgage banker, the broker is not a lending service and will not have the power to approve or decline your mortgage application. Instead, the mortgage broker creates a middle-man effect and assists with the application for a mortgage loan.

When scanning the mortgage market on a national and regional level, the mortgage broker understands a lender’s specialty and is unique in that he or she can identify which lender would suit your specific needs. In addition, they will assist with checking your credit and work record, arranging for property appraisal and arranging for title searches. Once all this analysis is done, the broker will choose the most suitable mortgage lender who is most likely to accept your mortgage application.