Mortgage Broker and Loan Officer

When you apply for a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. Because both reap the same result (a new home), people usually confuse the two job types. However, knowing how they are different is helpful to the mortgage process.

Mortgage Brokers

A mortgage broker is someone or firm that serves as an independent agent for both the mortgage loan borrower and 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 bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Which lender has the loans that is right for you? A mortgage broker will help you find the right fit. You give your application to your broker, who offers it to various lenders. Your mortgage broker then assists your work with the lender of choice until closing. The broker gets a commission from the borrower at closing.

About Loan Officers

Loan officers work for a specific lending institution (such as a bank) who offer and process mortgages and other loan programs on behalf of their place of employment alone. While a mortgage banker may promote quite a variety of loan programs, they will be programs of that one lender.

A mortgage banker represents you to the bank or other lending institution. A mortgage banker will help the borrower through the selection, processing and closing of the loan. Mortgage bankers are given a commission or salary for their work by their employers.