Mortgage Broker vs. Loan Officer
When you apply for a mortgage , you should know the difference between a mortgage banker and a mortgage broker. It's easy to confuse these since both will give the same outcome: a new home. Yet knowing how they are different will be important to your mortgage loan process.
What is a Mortgage Broker?
A mortgage broker is a person or group that works 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 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 credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. A mortgage broker can look at your financial situation to determine which lender is the best fit for your loan needs. Your broker will offer your loan application to several lenders, and works with the chosen lender until closing. The broker gets a commission from the borrower when the loan closes.
About Loan Officers
Lending Institutions (banks, finance companies, and others) employ loan officers to market, and process mortgage loans originated by that specific institution alone. There may be a wide range of loans types to draw from, but all are products of that particular lending institution.
A mortgage banker (also known as an "account executive" or "loan representative") represents the borrower to the lender. The loan officer can help you through the selection, processing and closing of the loan. Mortgage bankers are given a commission or salary for their services by their employers.
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