Mortgage Bankers Vs Mortgage Brokers
Broadly speaking, many consumers out there assume the ‘mortgage companies’ are the commercial banks that provide or lend the money. Actually, a company that we deal with if we happen to be engaged in any real estate transactions is either a mortgage banker or a mortgage broker. 

By definition, a mortgage banker is technically a direct lender that lends us the money, although it often sells the loan to the secondary market. While on the other hand, a mortgage broker is a middleman (an agent) who does the loan shopping and analysis for a borrower and puts the lender and borrower together. In short, many of the lenders by whom the broker finds the loan do not deal directly with public, hence, the expression can be referred as ‘wholesale lenders’.

Obviously, using a mortgage banker can practically save us the fees of a middleman and we can execute the loan process easier by ourselves. In fact, a mortgage banker can provide us a direct loan approval, whereas a broker gives us information we need one way another. However, many of the mortgage bankers are limited in what they can offer, which is seemingly essential to pay attention on when dealing with their own product.

Apart from that, a mortgage broker charges a fee for the service offered but has access to a wide variety of loan programs. As an example, he or she may have the knowledge of how to present our loan application to different lenders for approval. However, in one particular case, there are some mortgage bankers who also act as a mortgage broker. So, being as an investor, it is wise to have both a mortgage broker and a mortgage banker on our team. Nevertheless, it might be best to keep in mind that a mortgage brokering is the unlicensed profession in many states and so in case if there is no licensing agency to complain to on behalf of our legal issue, then we are strongly advised to make our personal references beforehand prior to carrying out our business in dealing with a mortgage broker.

Note: Kindly look through the “Category” section for the complete list of articles published. Don't forget to subscribe and share our articles as many times as possible on any social media platform.


  1. EXP Realty is one of the finest real estate brokerage firms in the United States. Their representatives can assist you with buying, selling, or renting any real estate property in the United States. You may learn more about EXP Realty by visiting the Casanova Brooks website.

  2. Because of the added risk associated with private mortgage loans, private mortgage loans are often given at higher interest rates than bank mortgage loans. Even though personal loans have higher interest rates, many high-risk borrowers choose them since it is difficult to get a traditional loan. In these transactions, the lender's risk is mitigated by more significant equity requirements for financing the loan, generally at least 30% of the loan amount. Individuals are not the only ones who use private mortgage lenders; higher-risk businesses also utilize private money lenders since the rules and guidelines for traditional loans have gotten more stringent.

  3. Incredibly uncommon post. I just found your blog and expected to say that I have actually completely delighted in analyzing your blog segments. A way I'll buy in your feed and I truly need to acknowledge that you post again soon. Monstrous appreciation for the significant data. hard money lenders newport beach