Know the difference: Mortgage Brokers vs Mortgage Bankers/Loan Officers

When you initiate your mortgage application, you may work with a mortgage broker OR a mortgage banker/loan officer.  It is important to understand the difference between these parties.

Mortgage Brokers

As a mortgage broker, Summit Financial, LLC is an independent agent for both the mortgage loan borrower AND the lender.  As a mortgage broker, I am 'online' with numerous wholesale lenders from across the Country.  These mortgage lenders afford my clientele access to the greatest range of available programs AND a wholesale pricing model.  Summit then adds its profit margin, in presenting our clientele with our "retail rate."  I put retail rate in quotes, as given we have numerous wholesale lenders to consider across the Country; and, as Summit is a small brokerage business with the overhead to prove it, our pricing model is more than competitive.  Once we arrive upon the pricing model which will best serve your needs and initiate the processing of your application, I will work closely with you under your application.  All communication related to the processing of your loan will be facilitated thru me, as I will be there at every point in your application process.  The end lender typically compensates me at time of successful closing.

Mortgage Bankers/Loan Officers

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to market and process loans solely from that particular institution.  Although a loan officer may promote quite a range of loans, they are all programs of that one lender.  As each lender has its own unique offering set, this selected lender may not offer the program to best meet your needs.  These larger entities typically move your application thru numerous departments.  While your assigned loan officer may be seasoned, you may well be primary dealing with an entry level employee under the processing of your application.  With many parties considered under this process, response times can be delayed and processing efficiencies are often sacrificed.  Mortgage bankers can be given a commission or salary for their services by their employers.