Mortgage Broker, Mortgage Banker, Bank????

What's the difference??

Well, with so much "mortgage" in the marketplace today and after being asked so many times, I decided to really define in print the difference between the 3 types of lenders who you may come across in searching for a mortgage.

Mortgage Broker:  (that's me)
A mortgage broker is the middle man between a borrower and a lender.  The mortgage broker could have 40 different lenders it represents giving the broker literally 100's of different programs to offer borrowers..  A mortgage broker will have the best ability to accommodate unique loan situations.  The mortgage broker is paid by the lender for bringing the borrower to the lender.

Mortgage Banker:
A mortgage banker is basically a bank that only does mortgage transactions.  They are a combination of a broker and a bank in that they fund their own loans whereas a broker will have various lenders to work with.   The mortgage banker may be less open to working with people who have poor credit or very unique situations.

A General Bank:
Your local and national banks also have mortgage services.  By the nature of what they do, banks are generally conservative and limited in the programs they have to offer a borrower.   They usually cater to borrowers who fit a certain type of pattern with respect to their credit and borrowing needs.  If you fall outside those parameters, you will not be able to obtain a loan from that bank.  

Rates will often time be relatively similar between the 3 different types of lenders, however mortgage brokers may have a certain flexibility regarding rates that could be advantageous to the borrower, not to mention requiring less paperwork!