Know the difference: Mortgage Brokers and Loan Officers
When it comes to locating a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. People usually confuse the two job types as both will give the same outcome: a new home. But for your application process, it will benefit you if you know how they differ.
A mortgage broker is an individual or firm that works as an independent agent for the mortgage loan applicant as well as the lender. A mortgage broker coordinates 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, private investor. A mortgage broker can consider your financial situation to find out which lender is the right fit for you. Your broker will present your mortgage loan application to one or more lenders, and works with the chosen lender until closing. The borrower submits a commission to the broker upon closing.
About Loan Officers
The most important 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 market and process loans solely originated from the programs of that institution. There can be a wide variety of loans types to choose from although all are programs of that particular lending institution.
A mortgage banker (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. From choosing a loan product to closing, a mortgage banker can help you through the process. Mortgage bankers are compensated with a commission or salary for their services by their employers.
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