What is a mortgage loan originator? We’ve been asked this question countless times. A mortgage loan originator is a person or a company that helps the would-be homeowner get his dream home. An originator can be a mortgage banker or a mortgage broker. Loan originators help the borrower with the loan process from application until closing. This about an originator as your guide from beginning to end.
Types of mortgage originators
There are different mortgage originators, and the two most common ones are the mortgage banker and the mortgage broker. A mortgage banker is a person who works at a company that funds the loan during closing coming from its own fund. These are usually the credit unions and retails banks.
The mortgage broker, on the other hand, is just that – a broker. He liaises between the borrower and the different mortgage institutions. Let us say you want to apply for a VA loan; a broker will get the necessary documents from you, including your application, income, and credit history, and help you with the process until closing. The main difference is that the broker will only help you with the process and will forward your loan to a lending institution that will release the funds during closing.
How does a mortgage originator earn?
For one, mortgage originators make money through salaries, fees, and commissions. The average base salary of a loan originator is $ 91,318, which depends on which State the originator is working in. Due to the COVID pandemic, rates are changing, and in some States, their base salary is at $133,750 plus of course the commissions (usually at 2.25% of each loan).
So if ever you are in the market for a home mortgage, feel free to drop us a line and we would be more than happy to assist you to help you on your way to getting your American dream home.