Know what to expect: Mortgage Brokers vs. Loan Officers
Either a mortgage broker or a loan officer may assist you when it's time to find a mortgage loan. It's easy to confuse them because both will yield the same result: a new home. But as you begin the application process, it will benefit you if you recognize they ways they differ.
A mortgage broker is someone or firm that is an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. You partner with a mortgage broker to look at your financial situation and find the lender who has the right loan program for you. You deliver your loan application to your broker, who presents it to various lenders. Your mortgage broker then assists your work with the lender of choice until closing. The broker is given a commission from the borrower at closing.
About Mortgage Bankers
Mortgage Bankers represent a specific lending institution (such as a bank, credit union, etc.) who promote and process mortgages and other loan programs from their employer alone. Although a loan officer may offer quite a variety of loans, they will be programs of that particular lender.
Your loan officer represents you to the bank or other lending institution. The loan officer will walk the borrower through the application, processing and closing of the loan. Lenders pay their loan officers a commission or salary.
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