Loan officer, banker & broker - are they different?

Lending money and assembling a loan file to get the money are two separate things.  People who assemble your loan file are all called "loan officers." You can hire and pay the loan officer at the bank or hire an independent loan officer (mortgage broker) to complete this task for you.

Example: Take your car to the dealer (bank) or to an independent mechanic (broker).

Banks lend their money and only offer loan programs that they have.  They do not shop various lenders and do not have the flexibility to go to a diffferent bank to get money if your loan is denied.

Bankers are loan officers who work for mortgage companies that offer mortgage loan products only. Bankers can only offer their loan products and cannot shop your loan with other lenders unless they are also licensed as a mortgage broker.

Mortgage  brokers can go to just about any bank or mortgage company allowing them to find the best terms. Brokers are required to meet federal and state licensing requirements in order to have the abllity to assemble (originate) a mortgage loan file.

Who has the best rates?  Brokers do.  Banks offer lower rates (wholesale rates) to the broker in an attempt to get their business. The cost of originating your loan is the difference.  Some banks show all of the fees but mainly banks will offer a higher rate with reduced fees.  To read more on this subject click here.

I am both a banker and a broker so there is no incentive for me to promote one over another. You can get great service or lousy service from any of the above.  It really depends on the individual loan officer and how they handle their business.

 

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Serving California since 1977

 

First Priority Financial is licensed by the California Department of Real Estate #00654852 Nevin#01366552

3110 Camino Del Rio #311 San Diego CA 92108

(888) 206-5781

Also licensed in Oregon, Washington & North Carolina

 

 

Nevin Williams NMLS #69651