Mortgage Banker vs. Mortgage Broker: Which Should I Choose?

March 16, 2021 | 2 min read | The mortgage process

You may be wondering if working with a mortgage banker vs broker will have a considerable impact on your mortgage financing process. The answer may depend on your mortgage financing needs, desired loan program, and overall credit profile. GuardHill is a mortgage banker and a mortgage broker, which provides added value to our clients.

Mortgage Banker vs. Broker: What is a Mortgage Banker?

A mortgage banker will underwrite, approve, close, and fund their loans in-house. Having in-house operational teams helps streamline communication and improve efficiency, which allows for faster loan closings. A mortgage banker is a mortgage specialist that only focuses on originating and closing mortgages. 

A mortgage banker may have an extensive portfolio of loan programs from partnering with numerous investors and lenders, allowing them to provide financing to borrowers with unique credit profiles. So, a mortgage banker may have more control over your loan process because they have more flexibility when sourcing loan programs and terms and are hands-on with your loan from start to finish. 

Mortgage Banker vs. Broker: What is a Mortgage Broker?

A mortgage broker does not underwrite, approve, close, or fund your loan. Instead, the broker acts as a middleman and will offer you loan programs on behalf of another lender or institution. Therefore, a mortgage broker will shop around with various lenders to find you the best rate and loan program that matches your financial profile. Once the broker finds a suitable lender or institution, the company will underwrite, approve, close, and fund your loan.

How do Mortgage Bankers and Brokers Differ from Retail Banks?

A retail bank’s focus is not on mortgages – it is often selling credit cards and collecting deposits. Additionally, a retail bank’s mortgage division only has access to its own set of guidelines. If the bank cannot secure the loan or offer a competitive rate, then the bank does not have any other options for that client. Then, the client will have to re-apply for a mortgage with another bank or lending institution. Mortgage bankers and brokers typically have more flexibility and attractive loan programs than retail banks.

Is GuardHill a Mortgage Banker or Broker?

GuardHill is a mortgage banker and broker who works with numerous investors and lenders, allowing us to take care of the rate and program shopping for you, so you can avoid spending time comparing options from multiple lenders. GuardHill is a mortgage specialist with in-house processing, underwriting, and closing teams. We pride ourselves on closing loans in as quickly as 30 days and offering approvals in as little as 24-hours. 

What is the Benefit of Working with GuardHill?

Working with a company that is both a mortgage banker and a mortgage broker, like GuardHill, provides you with more flexibility, especially during a time where guidelines may be getting tighter. 

Overall, choose to work with a mortgage company that will go above and beyond to understand your financial needs. Visit this blog to read more about common questions to ask a company when shopping for a mortgage. At GuardHill, we know that finding the best mortgage is just as important as finding the perfect home, which is why we provide the best combination of rates and services and strive to make your mortgage experience as stress-free as possible.