Mortgage Broker and Loan Officer

Either a mortgage broker or a loan officer can work with you when you need a mortgage loan. People frequently confuse them because both will produce the same result: a new home. Yet recognizing how they are different will be important to the mortgage loan process.

Mortgage Brokers

A mortgage broker (either a group or an individual) is 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 investor. You partner with a mortgage broker to consider your financial circumstance and find the lender who has the best loan for you. You deliver your application to your broker, who submits it to one or more lenders. Your mortgage broker then helps you work with the lender of choice until closing. The borrower submits a commission to the broker at closing.

What is a Loan Officer?

The most important difference between a mortgage broker and a mortgage banker is that a loan officer works for a lending institution (a bank, credit union, or others) to offer and process loans solely from the products of that institution. There may be a wide range of loans types to draw from even though all are products of that specific lending institution.

A loan officer represents you to the bank or other lending institution. The borrower is helped through the entire process, from selecting a loan to closing, by the mortgage banker. Loan officers may be compensated with a commission or salary for their work by their employers.

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