Mortgage Broker vs. Loan Officer

Either a mortgage broker or a loan officer may help you when you're looking to get a mortgage . Because both reap the same outcome (a new home), it's easy to confuse them. But for the application process, it can benefit you if you understand they ways they differ.

Mortgage Brokers

A mortgage broker (either a firm or an individual) is an independent agent for both the mortgage loan borrower and the lender. A mortgage broker coordinates things between you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Which lender offers the mortgage loans that fits your needs? A mortgage broker will help you find the right fit. 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. Upon closing, the broker's commission is given by the borrower.

About Mortgage Bankers

The biggest difference between a mortgage broker and a mortgage banker is that the latter works on behalf of a lending institution (a bank, credit union, or others) to process loans solely originated from that institution. There may be an assortment of loans types to choose from, but all are products of that particular lending institution.

A loan officer will represent you to the bank or other lending institution. From choosing a loan to closing, a loan officer will guide you through the process. Either a salary or commission is paid to loan officers by their employers.