I’m often referred to as a mortgage broker, and while I don’t generally mind, I do think it’s important for people to know the difference between a mortgage banker and broker. So, the answer to the above question is yes, there really is a difference between the two, and it’s something to consider when selecting a home loan for your purchase (or refinance) of your Reno or Sparks home.
Simply put, a mortgage banker has their own money to lend. A loan officer who is considered a mortgage banker works for an institution that lends its own money. Loan officers who work for a mortgage bank tend to have more control over the lending transaction because the loan is kept within their own company and is being worked on by fellow employees.

The downside is they are limited to the loan programs and interest rates that their bank offers. A mortgage broker is basically a third party between the borrower and the lender. The broker needs to find a mortgage bank, or a wholesale lender, who will provide a loan for their client. They do not have their own money to lend. The positive to being a mortgage broker is that they have a variety of banks to choose from, and therefore a number of loan programs and rates they can offer their client. The downfall is that they lose control of their loan file. The loans they work on are being handled by another company. The lender they send the loan to underwrites, processes and funds the loan, and the loan officer is dependent on someone else to complete the loan. This can often lead to delays in loan closings and often, there are more fees involved.

Some companies are what I like to call a hybrid, sort of the best of both worlds. The Reno Mortgage company I work for, Platinum 1^st Mortgage, is one of these hybrids. We’re an affiliate of National City Bank so we have our own money to lend. However, we also have the ability to broker loans when we need a loan program that we cannot offer, of course we have: FHA, FNMA, Jumbo loans etc. I like to think we offer the most flexibility to potential borrowers. We also have the benefit of being a true local, Reno mortgage lender, as we offer underwriting through funding here in our office.

So who are you or your clients dealing with for the home loan? It’s important to know the type of mortgage company you’re working with so you can make the right decision for yourself.

If you’ve got any questions regarding Northern Nevada home loan financing, don’t hesitate to give me a call!
Stephanie Hanna Your Personal Reno Mortgage Banker and Broker 775 762 9114

shanna@platinum1st.com

Filed under: Loan Information