Question:
“I’m shopping lenders for my home loan and one said she’s a mortgage banker. Is that the same as a mortgage broker?”
Answer:
Great question…and the answer is “no.”
Mortgage BANKER
They handle everything in-house and lend you their own money, though they’ll probably sell the loan later. Mortgage bankers include banks, credit unions, and mortgage companies.
Pro:
More predictable and the person you deal with has more control since it’s in-house.
Con:
Less rate and program flexibility as they only offer their own loan.
Mortgage BROKER
Mortgage brokers do not lend their own money. They shop different mortgage sources and ideally get you the best rate and terms. Some brokers are large, reputable firms with skilled loan officers. Others are not.
Pro:
Can be better rate and terms.
Con:
Loan rep has less control over the process. Greater possibility of a bad experience.
To make things more complicated…or simpler…some mortgage brokers are also mortgage bankers! So you get the best of both worlds.
And I know a great one, so reach out to me and I’ll give you his contact info.
