Mortgage Banker vs. Mortgage Broker

Not all mortgage institutions are alike.  There is a significant difference between a Mortgage Banker, a Traditional Bank and a Mortgage Broker. The differences may surprise you. 

Mortgage Banker:On Q Financial is a Mortgage Banker with more capabilities than a Mortgage Broker.  Mortgage Bankers are specialists in providing mortgage services.  Unlike a Mortgage Broker, a Mortgage Banker has unlimited flexibility to shop the entire lender market.  This can provide a significant pricing advantage over banks, for example.  But like a Bank, Mortgage Bankers are authorized to underwrite, draw documents, and fund mortgages themselves.  They have their own reserves to draw from.  These in-house capabilities virtually guarantee quick and accurate closings for our customers. 
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Traditional Bank: The traditional Bank usually is a generalist offering many financial products and services.  One is mortgage financing.  Therefore, banks usually offer a set range of interest rates and costs, and a limited range of mortgage options to choose from for the home loan or refinancing needs of consumers.

Mortgage Broker: A Mortgage Broker specializes in offering mortgage services.  Their pricing is competitive, because each Mortgage Broker has access to a wide variety of interest rate and approval options.  But a Mortgage Broker must depend on other lenders to underwrite, draw necessary documents, and fund loans.  This can limit their flexibility, significantly.  In cases where quick document turnaround is required or when the occasional mistake is made, a Mortgage Broker must depend on others to meet a deadline.