Posted on: 06th Feb, 2009 10:51 am
Can someone please discuss the difference between a bank and a mortgage banker?
A bank and a mortgage broker? A bank is basically just that. They offer their own programs, have their own guidelines and produce their own rates. A broker has access to multiple lenders (banks) and therefore can usually find you a better rate or program, as they have more options.
yes, indeed, a bank is a bank. good answer, ashley!
as for a mortgage banker - there's a distinction between that appellation and a mortgage broker. a mortgage banker is one who will work for one company, and not (generally) seek a conduit for his loans. for instance, although prospect mortgage is not a bank, we are mortgage bankers. that means we fund our own loans with our own money. we have the option, on occasion when a loan doesnt meet our guidelines, to broker out a loan.
a mortgage broker has no money of his own to lend - brokers find a source of funds for a buyer and that is where the money comes from - sometimes the ultimate lender is a bank, sometimes a mortgage company or mortgage banker, etc.
does that help a little more?
as for a mortgage banker - there's a distinction between that appellation and a mortgage broker. a mortgage banker is one who will work for one company, and not (generally) seek a conduit for his loans. for instance, although prospect mortgage is not a bank, we are mortgage bankers. that means we fund our own loans with our own money. we have the option, on occasion when a loan doesnt meet our guidelines, to broker out a loan.
a mortgage broker has no money of his own to lend - brokers find a source of funds for a buyer and that is where the money comes from - sometimes the ultimate lender is a bank, sometimes a mortgage company or mortgage banker, etc.
does that help a little more?
