Mortgage Broker vs. Mortgage Banker
While many consumers think that “mortgage companies” are banks that lend their own many, in reality they are mortgage brokers or mortgage bankers. What is the difference between a mortgage broker and a mortgage banker? A mortgage banker is a direct lender, lending their own money. They may service the loan (collect payments) but most do not. They often are limited to just their “banks” own loan products. A mortgage broker enters wholesale agreements with many different lenders. The broker offers analysis and shops the borrowers situation and place that loan with a lender who can do that loan.
With a banker you might be able to cut out the cost of the middleman, but don’t count on it. Real mortgage pricing is pretty uniform. You will be limited to just the products offered by the banker, and if you fit those, great otherwise you will be out of luck. A mortgage broker may have access to better lenders for the loan you are looking for (better pricing, or quicker service).
