Tuesday, September 05, 2006

Mortgage Banker vs. Mortgage Broker

During the course of buying a home, I'm frequently asked by home buyers about lenders. One question that comes up is the difference between a mortgage banker and broker:

A Mortgage Banker:
Is a direct lender that originates and funds its own loans which are then sold on the secondary market. The advantages are:
1) Greater control over the loan process
2) Increased flexibility
3) Quicker response times
4) Faster and more efficient closings

A Mortgage Banker:
Represents many lenders and acts as an intermediary between the borrower and lender. The advantages are:
1) Access to a wider variety of loan programs
2) Increased loan options
3) Greater qualifying ability
4) Ability to taylor a loan to meet your needs

No comments: