Mortgage bankers can be individuals or lending entities. They fund the mortgages that make so many home purchases possible, either with their own money or via other lending avenues. By securing this capital, they orchestrate and provide the essential financial capital of mortgages for borrowers.
After the initial mortgage arrangements, a mortgage banker might continue to handle your loan or they might choose to transfer the management responsibilities to a different company. Most mortgage bankers make their money from the service fees that are incorporated into loans, so service transfers are common.
Transfer of service usually depends on the size of the mortgage banking entity. If they are a smaller firm, your mortgage servicing might be moved around. A larger mortgage banker typically has more resources and can afford to keep the loan in their portfolio.
How is a mortgage banker different from a mortgage broker? Great question! These two terms sound a lot alike and the positions themselves are definitely similar. A mortgage banker will close a loan in their own name with their own funds, whereas mortgage brokers can only serve as a gateway to other financial institutions.
The main benefit of working with a mortgage banker is better rates and financial programs. Because mortgage bankers have brand power, they are often invited to participate in things like first time buyer programs. If you qualify, this can contribute to a significant cost reduction in the loan you secure for you home.
If you’re ready to begin the mortgage process, contact Midland Mortgage or call us at 800-854-9484.