Mortgage Broker vs. Loan Officer
Either a mortgage broker or a loan officer may help you when it comes to finding a mortgage . As a new home is the outcome of the work of both mortgage broker and mortgage banker, it's easy to confuse them. But as you begin the application process, it will benefit you if you know how they are different.
During the mortgage loan process, an individual or group who is an independent agent for the mortgage loan applicant as well as the lender is a mortgage broker. A mortgage broker facilitates things for 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 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 a private investor. You work with a mortgage broker to look at your financial situation and lead you to the lender who has the right loan program for you. You give your application to your broker, who submits it to various lenders. Your mortgage broker then guides your work with the lender chosen until the closing of the loan. The broker receives a commission from the borrower at closing.
About Loan Officers
Mortgage Bankers are representatives of a specific lending institution (such as a bank, credit union, etc.) who process mortgages and other loan products on behalf of their company alone. Although a loan officer may offer quite a variety of loans, they are all products of that specific lender.
A mortgage banker (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. The loan officer will guide you through the application, processing and loan closing. Lending institutions compensate the mortgage bankers with a commission or salary.
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