Mortgage Broker vs. Loan Officer

When you work on your application for a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. People sometimes confuse them since both will yield the same result: a new home. However, recognizing the ways they differ is helpful to the mortgage loan process.

What is a Mortgage Broker?

A mortgage broker (either a firm or an individual) is an independent agent for both the mortgage loan borrower and the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. Which lender offers the mortgage loans that fits your financial situation? A mortgage broker will guide you to the right one. From application to closing, your mortgage broker facilitates your loan process: presenting your mortgage application to several lenders, and walking you with the chosen lender through to the closing of your loan. The broker receives a commission from the borrower if the loan closes.

Mortgage Bankers

Mortgage Bankers represent a specific lending institution (such as a bank) who market and process mortgages and other loan products originated by their company alone. While a loan officer may promote quite a range of loans, they all are products from that particular lender.

A mortgage banker (also known as an "account executive" or "loan representative") represents the borrower to the lending institution. From finding a loan program to closing, a loan officer will guide the borrower through the process. Loan officers are given a commission or salary for their services by their employers.

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