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

A mortgage lender is a financial institution from which you as a consumer receive financing, a loan, from. The money comes from the lender itself or its investors. The lender is the place you mail your mortgage payment every month.

A mortgage banker is a person who works for a bank. A bank is a lending institution. The mortgage banker, when loaning you money secures the financing from the bank he or she works for. They only write loans at the bank they work for.

A mortgage broker is a person whose job it is to bring together you, as the consumer, and the bank or lender. For a fee, a mortgage broker will work to secure a loan for you and has the ability to do so from multiple banks and lending institutions.

What’s the difference to you, you may ask? For the most part, you will receive much more personalized service with a mortgage broker than any other type of lending institution. A broker has multiple places he or she can shop your credit information around to get you the best deal. Some banks and lenders will have pricing specials available to consumers that does business with them during a specific time where a mortgage banker only has one place to give you a quote from. Also, a mortgage broker will typically work harder typically because he or she doesn’t get paid until your loan closes.

When you do business over the phone directly with your lender the costs may be cheaper but you will never meet this person and the interest of that specific lender is all they are concerned with. Also, when you do business across the country, your loan may take much longer due to the geographical differences you may have where you are at versus where they are. A mortgage banker may have a local branch to speed loans up but their interest rates may be much higher than what a mortgage broker can seek out for you.

Infinity Financial Group has the both of best worlds. The company is licensed as a mortgage banker but what separates us from the competition is, Infinity can also broker loans. What this means for you as the consumer, is no matter what, our company can find a program, rate, and cost that can make you happy. Infinity Financial Group can search for the best interest rates or lend money ourselves to save you some costs.