Mortgage Broker vs. Loan Officer

When you need a mortgage , you need to know the difference between a mortgage broker and a mortgage banker. As both a mortgage broker and lending officer can help you fund your new home, it's common to confuse them. But for your application process, it will help if you recognize their differences.

What is a Mortgage Broker?

A mortgage broker is an individual or firm that is an independent agent for the mortgage loan applicant 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 investor. You partner with a mortgage broker to analyze your financial situation and find the lender who has the right loan program for you. Your broker will present your mortgage loan application to various lenders, and works with the lender of choice until closing. Upon closing, the broker's commission is given by the borrower.

About Mortgage Bankers

Mortgage Bankers work for a particular lending institution (such as a bank, credit union, etc.) who work with mortgages and other loan programs for their employer alone. They may be able to offer loans to fit many different situations, but all the loans will be programs from the same lender.

Also known as a "loan representative" or "account executive," a mortgage banker acts of behalf of the borrower to the lending institution. The mortgage banker can help the borrower through the application, processing and loan closing. Either a salary or commission is paid to mortgage brokers by their employers.

Searching for a mortgage loan? We'd be thrilled to discuss our mortgage offerings! Give us a call today at 4078987559. Ready to begin? Apply Now.

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