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Mortgage Broker to Mortgage Banker (MBS) - Broker to Banker information |
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Note: The content below about broker to broker is under review and still being developed. Broker to Banker Banker to broker -- which is better? You can get a good deal with either. The important thing is whether you get a good rate and pay fair closing costs, not who you get the loan from. The short answer to the first question is this: It doesn't matter much whether you use a broker or banker.
What does it mean when someone is going from a broker to banker? And what's the difference, anyway? About 65 percent of home loans are originated through brokers. The majority of people find that better deal with mortgage brokers. The loan officer's employer -- the bank -- decides whether to underwrite the loan and at what rate and terms. The main difference behind the scenes is that a mortgage broker to mortgage banker lends the bank's own money. A broker doesn't lend his or her company's money. The broker to banker doesn't make those decisions.
The broker introduces the borrower to a lender and does much of the paperwork, but the lender decides whether to underwrite the loan and at what rate and terms.
Both of them describe the various loan types that are available and help the borrower choose one, collect the application and supporting paperwork, and keep in contact with the borrower until closing day. From the consumer's standpoint, there's not a whole lot of difference between a mortgage broker and a mortgage banker.
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