Q: What are the pros and cons of working with a mortgage broker vs. a mortgage lender? –Malik
A: There are several, although in some respects, the gap between mortgage brokers and mortgage bankers has narrowed in the wake of the foreclosure/housing market crisis.
Generally speaking, mortgage brokers are licensed, independent contractors associated with independent, licensed brokerage companies, who work on 100 percent commissions to connect mortgage consumers (those seeking to finance a home purchase, and those seeking to refinance their current homes) with loans from a variety of mortgage banks and lenders.
Mortgage bankers or lenders, on the other hand, are usually employees of a mortgage bank who work on some combination of salary and commissions to connect borrowers primarily with loans funded by their employer. Walk into a bank off the street and the person who handles your loan application is a mortgage banker.