A mortgage banker is similar to a mortgage broker, but there are a few key differences that borrowers should be aware of before they seek advice from either one.
First, a mortgage broker is a direct lender. What does that mean? They are selling their own products and they have an objective in mind when they sit you down to discuss your options – they want to sell you on their own company’s loan. This is how they make their money.
Providing you with objective advice and information would mean laying out all the facts on the table and letting you make an unbiased selection. But brokers can’t risk losing your business to another mortgage lender. So they emphasize their own products and probably won’t include other options that might be a better fit for you.
A mortgage banker also deals with lending services, but they are not affiliated with any one company or brand. Instead, mortgage bankers sell multiple products across the lending spectrum. They are, therefore, a more objective source of information, unencumbered by the pressure of making a sale or getting commission from your business.
Mortgage bankers get paid a salary no matter which mortgage you choose – their job is to make honest recommendations and find the best loan for you and your budget. Their advice will be more valuable to borrowers, especially newcomers just getting familiar with the market and loan process.
Shopping for a mortgage can be intimidating and sometimes overwhelming. There are so many factors to keep in mind that you may feel discouraged before you even get to the application process. Working with a mortgage banker will help you to consider all of your options and make an informed decision.