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The Difference Between A Mortgage Broker, Mortgage Lender & A Mortgage Banker

Erin Posey

There are key differences that can impact your experience when going through the mortgage process.


As you start to think about buying a home, there are many questions that may arise. Understanding the difference between a Mortgage Broker, Mortgage Lender and a Mortgage Banker is something that is very misunderstood. There are key differences that can impact your experience when going through the mortgage process.


It is important to define each and recognize the pros and cons…

A Mortgage Broker is an intermediary who brings mortgage borrowers and mortgage lenders together, but who does not use their own funds to originate mortgages. They are required to carry a license and renew these once a year.

  • Has access to the resources to secure a slightly lower rate, however it is not guaranteed.

  • The transaction is not in house making brokers have less control over the process.

    • Causes potential delays or the loan not closing.

A Mortgage Lender is an individual that works for a financial institution (mortgage company) that specializes in mortgages and makes funds available to a person or business to originate mortgages. They are required to carry a license and renew it once a year.

  • Everything is in house, making the process more streamlined.

    • Both the client and all parties involved benefit.

  • Rates can be slightly higher, but not always.

A Mortgage Banker is an individual that works for a depository institution (Bank) to make funds available to a person or business to originate mortgages. They are not required to carry a license, therefore no need to take renewal classes every year.

  • High net worth clients with the Bank can be offered a portfolio program

    • Not accessible to most.

  • Limited hours and overlays greatly reduce the amount of buyers pre-approved and closed.

Now that we have broken down the basics between the three, let’s dive into why a Mortgage Lender can be super beneficial to you during the process. I myself am a Mortgage Lender and have the option to be a broker or banker as well. The path I have chosen and the company I am working with has benefits that help the consumer when looking to enter the home buying arena.


Do you have overlays? Overlays are in-house guidelines on top of guidelines, which results in less people being able to obtain a mortgage when in reality they should be able to. Some Mortgage Lenders do have them, but I don’t. It is very important to me to remain at a company where no overlays (additional requirements on top of Federal guidelines) is standard business practice. This allows me to better serve you and get a higher % of applicants preapproved and closed.


Another common question I get, from listing agents especially, is my team all in house? The answer is yes! It takes a village behind the scenes to close a mortgage and do it with ease. My entire team from my assistant, processor, underwriter, closer and everyone else involved, are all “in house.” This means we do not contract any people out. I have full control over turn times to ensure we execute on all contract deadlines, most importantly closing.


It is important to be an educated consumer when looking to buy a home. At the end of the day a team that sets you up for success, has a streamlined process and looks out for your best interest is who you want by your side when making your biggest life investment. 68% of loans do not close or close on time. Let’s have you on the right end of that statistic!


Contact us today to get your customized wealth journey started. #buildwealth #askanagentanything




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