What is the difference between a mortgage broker and a mortgage banker?

Mortgage Minute

As a Mortgage Banker and Broker, I have an unbiased opinion of each type of entity. From the standpoint of a consumer the differences in the two can be hard to detect. While each entity has strengths and weaknesses, it’s beneficial to remember that all mortgage entities are middle men. They must sell loans to the market to free up cash in order to make more loans. I know of Bankers that overcharge consumers with a smile on their face and I know brokers that offer a great deal. There are national lenders that are publicly traded companies making thousands of shareholders rich at your expense and there are local private firms that can beat national lenders hands down due to better efficiencies and lower overhead. From my experience certain loans are best handled as a banker while others are best brokered. What you need is an experienced consultant you can trust who will share realistic expectations. For mortgage information contact TexasLending.com today or send your email questions to info@texaslending.com.