Difference From Mortgage Broker & Mortgage Banker.

Difference From Mortgage Broker & Mortgage Banker.

A mortgage company can either be a banker or broker or sometimes combine the two.

A Mortgage Banker is a direct lender; it lends you its own money, although it often sells the loan to the secondary market, investors or a wholesale lender.

A Mortgage Broker is a middleman who finds a lender who will close the loan. Mortgage brokers do not make the credit decision or issue their own loans. The brokers work with many wholesale lenders who do not deal directly with the public and brokers ten to have working relationships with multiple lenders.

Distinction between mortgage bankers & mortgage brokers:-

~ A mortgage broker will pre-screen a borrower’s application but then has to submit it to the lender for approval and has no control over the speed of the process. A mortgage broker does his own in-house underwriting approval decision and closes the loan with its own money (often obtained through a “warehouse” line of credit from a commercial bank).

~ Another distinction is the flexibility in product offerings. Some mortgage bankers only offer its own line of products, which may limit the number of choices available to the borrower. They may also push their own products over a competitor’s program. Mortgage brokers typically work with a number of lenders and so would have a wider selection of loan products, thus shopping around for the best deal for the borrower.

Some mortgage bankers offers a hybrid of both.  It pays to shop around and get quotes from different brokers and bankers for any type of loan product be it super jumbo, conforming, sub-prime, new purchase or a refinance of an existing mortgage.

David Popoff is a license Realtor in Fairfield County, Connecticut located in Darien.   A life time resident of Fairfield County he has worked throughout lower Fairfield County for over 30 years and now resides in Darien, Ct since 2004. 

• Member of the Connecticut Association of Realtors, CAR.
• Member of the National Association of Realtors, NAR.
• David Popoff is an accredited LEED Accredited Professional (LEED AP) Homes and USGBC member of the Connecticut chapter (CTGBC).  
• Associate member and an accredited Certified Green Professional (CGP) of National Association of Home Builders (NAHB) and the local chapter HBRA-Fairfield County, Ct. .
• Contact David Popoff for all your real estate needs in Darien, New Canaan, Rowayton and other parts of Connecticut.