Mortgage Broker vs. Loan Officer

When it comes to locating a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Since a new home is the result of the work of both mortgage broker and mortgage banker, people can confuse the two job types. Yet knowing how they differ is advantageous to the mortgage process.

What is a Mortgage Broker?

During the mortgage loan process, an individual or firm who is an independent agent for the mortgage loan applicant as well as the lender is a mortgage broker. A mortgage broker coordinates things for you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. A mortgage broker can analyze your financial situation to find out which lender is the right fit for you. From application to closing, your mortgage broker works with you: submitting your mortgage application to several lenders, and walking you with the chosen lender through to the closing of your loan. The borrower submits a commission to the broker at closing.

Mortgage Bankers

The most important difference between a mortgage broker and a mortgage banker is that a loan officer works on behalf of a lending institution (a bank, credit union, or others) to promote and process loans only originated from the products of that institution. Although a mortgage banker may promote quite a range of loans, they all are programs of that specific lender.

A loan officer will represent you to the bank or other lending institution. From selecting a loan product to closing, a loan officer will guide you through the process. Lenders give their mortgage bankers a commission or salary.

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