Know what to expect: Mortgage Brokers vs. Loan Officers

Either a mortgage broker or a loan officer can help you when you apply for a mortgage . Since both yield the same result (a new home), people sometimes confuse the two job types. However, knowing the differences between them will be valuable to the mortgage loan process.

What is a Mortgage Broker?

During the mortgage loan process, an individual or company who is an independent agent for the mortgage loan borrower as well as the lender is a mortgage broker. A mortgage broker facilitates things between 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 a private investor. Which lender has the loan programs that fits your needs? A mortgage broker will lead you to the right one. Your broker will present your mortgage loan application to one or more lenders, and works with the chosen lender until closing. The borrower gives a commission to the broker if the loan closes.

What is a Mortgage Banker?

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to offer, and process loans from that specific institution alone. Although a mortgage banker may promote quite a variety of loan programs, they are all products with that lender alone.

Also known as a "loan representative" or "account executive," a mortgage banker represents the borrower to the lending institution. From finding a loan to closing, a loan officer can walk a borrower through the process. Either a salary or commission is given to mortgage brokers by their employers.

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