Know the difference: Mortgage Brokers and Loan Officers
Either a mortgage broker or a mortgage banker can help you when it comes to locating a mortgage . As both produce the same result (a new home), it's understandable to confuse the two job types. Yet it will be important to know the difference between the two jobs so you have clear expectations of them during your mortgage application process.
During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. A mortgage broker coordinates 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 bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Which lender has the loan programs that fits your needs? A mortgage broker will lead you to the right one. You give your mortgage loan application to your broker, who presents it to various lenders. Your mortgage broker then assists your work with the lender of choice until closing. The borrower pays a commission to the broker at closing.
About Mortgage Bankers
The biggest difference between a mortgage broker and a mortgage banker is that a loan officer works on behalf of a lending institution (a bank, credit union, or others) to process loans only from the products of that institution. While a loan officer may promote quite a range of loans, they will be programs of that specific lender.
A mortgage banker (also called an "account executive" or "loan representative") represents the borrower to the lending institution. From selecting a loan product to closing, a mortgage banker will walk you through the process. Either a salary or commission is given to mortgage brokers by their employers.
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