Mortgage Broker and Loan Officer
When you're looking to get a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. It's understandable to confuse these because both will yield the same result: a new home. But as you begin the application process, it can help if you know how they are different.
A mortgage broker is an individual or firm that works as an independent agent for both the mortgage loan borrower and the lender. A mortgage broker coordinates things between you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even a 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. Which lender offers the loan programs that fits your financial situation? A mortgage broker will help you find the right fit. You give your application to your broker, who submits it to several lenders. Your mortgage broker then guides your work with the lender chosen until closing. The borrower gives a commission to the broker when the loan closes.
What is a Loan Officer?
The main difference between a mortgage broker and a loan officer is that the latter is employed by a lending institution (a bank, credit union, or others) to market and process loans only originated from that institution. They may have the ability to market loans to fit many different situations, but all the loans will be products of the same lender.
Also called a "loan representative" or "account executive," a mortgage banker acts of behalf of the borrower to the lending institution. From choosing a loan to closing, a loan officer can help you through the process. Mortgage bankers can be paid a commission or salary for their services by their employers.
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