Mortgage Brokers vs. Mortgage Bankers
What's the difference?
Benefits of Brokers: Brokers work individually with borrowers. They are independent and search for a loan based on their needs, not their employer’s. Their customer's broker matches clients with lenders and then walks the paperwork through final approval and funding. The lender pays brokers’ fees, so they are of no consequence to the buyer.
Benefits of Bankers: Mortgage bankers are direct lenders; working with them eliminates the middleman. Mortgage bankers themselves approve or reject loans, which may prove more expeditious. Mortgage bankers must have substantial net worth if they are to survive. Because they compete with bankers and brokers, mortgage bankers offer competitive rates.