Mortgage Broker vs. Loan Officer
When you work on your application for a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. Since both produce the same result (a new home), it's easy to confuse them. But as you begin your application process, it can benefit you if you recognize their differences.
About Mortgage Brokers
During the mortgage loan process, an individual or firm who is an independent agent for the mortgage loan borrower as well as the lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. A mortgage broker can consider your financial situation to find out which lender is the right fit for your loan needs. Your broker will offer your mortgage application to various lenders, and works with the chosen lender until closing. 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 offer, and process loans from that particular institution alone. Although a mortgage banker may offer quite a variety of loan programs, they are all programs from that one lender.
Your mortgage banker will represent you to the bank or other lending institution. From finding a loan product to closing, a loan officer can walk you through the process. Lending institutions give their mortgage bankers a commission or salary.
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