Mortgage Broker vs. Loan Officer

Either a mortgage broker or a loan officer can work with you when it comes to getting a mortgage . As a new home is the result of the work of both mortgage broker and mortgage banker, people can confuse the two job types. Yet it will be helpful to know the ways they differ so you have clear expectations of them during the mortgage process.

What is a Mortgage Broker?

A mortgage broker is someone or group that acts as an independent agent for the mortgage loan borrower as well as the lender. A mortgage broker facilitates things for 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, 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. A mortgage broker will analyze your financial situation to find out which lender is the right fit for you. You deliver your loan application to your broker, who submits it to one or more lenders. Your mortgage broker then helps you work with the lender chosen until closing. The broker gets a commission from the borrower if the loan closes.

Loan Officers

Mortgage Bankers represent a particular lending institution (such as a bank, credit union, etc.) who work with mortgages and other loan products for their place of employment alone. There can be a wide range of loans types to draw from although all are programs of that particular lending institution.

A loan officer (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lender. From choosing a loan to closing, a loan officer can walk you through the process. Mortgage bankers are compensated with a commission or salary for their work by their employers.

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