A Mortgage Banker (or Lender) is often associated with a Bank. They do all of their lending functions “in-house” but are limited to only the loan programs their banks have. A Mortgage Broker has accounts with numerous banks/lenders and can choose the lender program best suited to satisfy the borrower’s needs.
Mortgage bankers originate, and “fund,” the mortgages that they sell, meaning they put up the money and handle the closing for the loans. Mortgage brokers are middlemen who shop different originators to find the deal that best suits their customers. Walden Mortgage Group is a correspondent lender, which means we have a direct lending relationship which enables us to work directly with the source of the money to ensure prompt closings. Our broker relationships also allow us to be flexible in our product lines and pricing. We have the best of both worlds!
A Mortgage Banker lends their own money to you to buy a home. A Mortgage Broker works with many different lenders to find a company to lend you the money to purchase a home. There are advantages to both. Since a Mortgage Banker, is lending their own money, they MIGHT be able to get you better terms or possibly lend you money even if your credit isn’t perfect. “Might” is the key word. You’ll need to shop around if that’s what you need. And that is what a mortgage broker does, shops around for a lender that fits your needs. They work with multiple lenders, so often they can find the best terms and conditions. The choice of a lender is ultimately up to you. Get recommendations from your realtor, and your friends and family.
