Broker
Makes connection of borrower to a wholesale lender
Theoretically can shop for rates with multiple lenders.
Has no connection to the progress of the loan after the application.
Banker
Works directly with the borrower throughout the mortgage journey.
Can get borrowers the most competitive rates available.
Offers a much larger range of products for every type of borrower.
Rates are fairly standard from broker to mortgage banker. That's because most home loans are repurchased by the same players - Fannie Mae & Freddie Mac.
The best rate is not always the lowest. Bankers tend to weigh all the options for the borrower to get the best LOAN, which is best for the borrower's financial future.
Most brokers limit their deals to only one wholesaler, so there's often even fewer options for their borrowers to choose from.
Not only is the borrower better served throughout the process, but the Loan Officer is able to develop a long-tern relationship with them.
Bankers are able to react to the client base's needs by bringing more and newer products to market - things like 2nd Lien loans and DSCR products.
Once the application is accepted by the wholesaler, the broker is done and rarely has any input to the loan processing or underwriting.
Banker vs Broker
Daniel Ziegler
Created on September 6, 2024
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Transcript
Broker
Makes connection of borrower to a wholesale lender
Theoretically can shop for rates with multiple lenders.
Has no connection to the progress of the loan after the application.
Banker
Works directly with the borrower throughout the mortgage journey.
Can get borrowers the most competitive rates available.
Offers a much larger range of products for every type of borrower.
Rates are fairly standard from broker to mortgage banker. That's because most home loans are repurchased by the same players - Fannie Mae & Freddie Mac.
The best rate is not always the lowest. Bankers tend to weigh all the options for the borrower to get the best LOAN, which is best for the borrower's financial future.
Most brokers limit their deals to only one wholesaler, so there's often even fewer options for their borrowers to choose from.
Not only is the borrower better served throughout the process, but the Loan Officer is able to develop a long-tern relationship with them.
Bankers are able to react to the client base's needs by bringing more and newer products to market - things like 2nd Lien loans and DSCR products.
Once the application is accepted by the wholesaler, the broker is done and rarely has any input to the loan processing or underwriting.