Mortgage Broker and Loan Officer

When it's time to get a mortgage , you should know the difference between a mortgage broker and a loan officer. Because a new home is the result of the work of both mortgage broker and loan officer, people often confuse the two. But as you enter the application process, it can help if you recognize their differences.

Mortgage Brokers

A mortgage broker (either a group or an individual) is an independent agent for the mortgage loan applicant as well as 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 a private 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 will examine your financial situation to find out which lender is the right fit for your loan needs. Your broker will submit your mortgage application to various lenders, and works with the chosen lender until the loan closes. The broker gets a commission from the borrower at closing.

What is a Loan Officer?

Mortgage Bankers represent a particular lending institution (such as a bank) who market and process mortgages and other loan programs originated by their place of employment alone. Although a mortgage banker may offer quite a range of loans, they will be products from that lender alone.

Also known as a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lender. From selecting a loan to closing, a loan officer can guide you through the process. Lenders give their loan officers a commission or salary.