Mortgage Broker or Loan Officer

Either a mortgage broker or a loan officer can help you when it comes to getting a mortgage . People usually confuse the two job types since both will yield the same outcome: a new home. However, knowing the differences between them is advantageous to the mortgage loan process.

What is a Mortgage Broker?

A mortgage broker is someone or group that is an independent agent for the mortgage loan borrower as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. You work with a mortgage broker to analyze your financial circumstance and lead you to the lender who has the best mortgage loan for you. You deliver your loan application to your broker, who submits it to a number of lenders. Your mortgage broker then assists your work with the lender of choice until the loan closes. The borrower gives a commission to the broker at closing.

About Loan Officers

The most important difference between a mortgage broker and a loan officer is that a loan officer works for a lending institution (a bank, credit union, or others) to process loans only originated from the products of that institution. There may be a wide range of loans types to draw from although all are products of that specific lender.

A mortgage banker (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. From finding a loan to closing, a mortgage banker will walk a borrower through the process. Mortgage bankers will be compensated with a commission or salary for their work by their employers.

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