Re/max Excalibur Realty

What is a mortgage banker?

by Julie Hillebrand 12/25/2022

When seeking financing to buy a home, many homeowners work with either a mortgage broker or a mortgage banker. While the terms are often used interchangeably, brokers and bankers play different roles in the mortgage industry. 

Here is a quick guide to mortgage bankers to help you learn more:


Mortgage banker vs mortgage broker

While they have similar names, mortgage brokers and mortgage bankers have very different jobs. A mortgage broker will assist you in finding a good deal on mortgage loans from multiple lenders. A mortgage banker actually originates and funds the loan.

Unlike banks, mortgage brokers are not financing loans themselves — they simply help you choose a loan that best suits you. A lender uses their cash to provide borrowed money, while the broker provides only assistance from the lender to the borrower.


Understanding mortgage bankers: What do they do?

Mortgage bankers usually work for banks in a specific lending department. Their work involves evaluating mortgage applications to determine if a potential borrower meets the financial institution requirements. Some mortgage bankers specialize in a specific type of mortgage, which can be helpful for borrowers with unique circumstances.


Other services & responsibilities

Mortgage bankers may also service or sell loans. As a loan servicer, they handle the payment processing aspect of the loan. This can include managing escrow accounts and providing payoff letters.

Some mortgage bankers sell loans to third-party servicers. This gives them a better opportunity to provide loans to additional borrowers, since it frees up their cash on hand.

How do you choose between a mortgage banker and a mortgage broker? There are advantages and disadvantages to both options, and much of the choice comes down to personal preference. 


However, understanding the way a mortgage banker works in comparison with how a mortgage broker works will help loan applicants make the best decision for their financial future. 


About the Author
Author

Julie Hillebrand

My personal commitment is to exceed your expectations.

Thank you for taking the time to visit my site. I feel that it is very important to know who you are working with when making any real estate purchase or sale.

I am a dedicated and knowledgeable Tucson real estate agent who can provide you with the highly specialized information that will help you make the right decisions. It’s the combination of this unique market-knowledge and excellent negotiating skills that enable me to get you the optimal price for any property you plan to sell or buy.

I have been a Tucson real estate agent since 1997, I am a Relocation Specialist, Accredited Buyers Representative, Graduate of the Realtor Institute and Certified Distressed Property Expert. I have the knowledge, experience and education to assure your experience is a successful one.
In my spare time,  I enjoy spending time riding my horse, hiking, biking, skiing and anything in the great outdoors.

I'm sure you will love Arizona as much as I do. I look forward to working with you.