Mortgage Broker vs. Loan Officer

When you apply for a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Because both give the same result (a new home), people usually confuse the two. Yet understanding how they differ is valuable to the mortgage loan process.

About Mortgage Brokers

A mortgage broker is someone or firm that is an independent agent for the mortgage loan borrower as well as the lender. A mortgage broker facilitates things between 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 credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. A mortgage broker will look at your numbers to find out which lender is the right fit for you. Your broker will submit your loan application to several lenders, and works with the lender of choice until the loan closes. The borrower gives a commission to the broker at closing.

What is a Loan Officer?

Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process mortgage loans originated by that specific institution alone. There may be a wide range of loans types to draw from even though all are programs of that specific lender.

A loan officer represents you to the bank or other lending institution. A mortgage banker will guide the borrower through the application, processing and closing of the loan. Either a salary or commission is given to mortgage brokers by their employers.

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