Mortgage Bankers and Brokers are Welcome to the Party!

Serving as third party mortgage providers, brokers and mortgage bankers work identically the same way in that they will work with you during the entire mortgage process. No matter if you decide to go with a banker or a broker, your mortgage will eventually end up coming from an institutional lender like Wall Street.

Although each will help you shop for a loan, find the best interest rates from lenders, and will help you find the best product; a mortgage banker has the ability to use their own money to close a loan and THEN sell it to a bank. The down side of this is that you may not know the name of the bank that will be indefinitely holding your loan until the day of the closing. This is due to the fact that the loan commitment letter, closing documents and disclosures are in the name the mortgage banker until they sell the loan.

When you use a broker you will know from the start what bank you are gaining the loan form, however the bank will most likely sell the loan. So in the end the results are the same when using a broker or mortgage banker.