Mortgage Broker vs. Loan Officer

Either a mortgage broker or a loan officer can assist you when it's time to get a mortgage . It's common to confuse these because both will yield the same outcome: a new home. But for the application process, it will benefit you if you understand how they are different.

Mortgage Brokers

During the mortgage loan process, an individual or group who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. A mortgage broker facilitates things for you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation 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 a private investor. You partner with a mortgage broker to look at your financial circumstance and find the lender who has the best mortgage loan for you. You give your application to your broker, who offers it to several lenders. Your mortgage broker then guides your work with the lender chosen until the loan closes. The broker is given a commission from the borrower upon closing.

Mortgage Bankers

The most important difference between a mortgage broker and a mortgage banker is that a mortgage banker works for a lending institution (a bank, credit union, or others) to market and process loans only from the products of that institution. There may be a wide range of loans types to choose from, but all are products of that specific lending institution.

A mortgage banker (also called an "account executive" or "loan representative") represents the borrower to the lending institution. From selecting a loan product to closing, a mortgage banker can walk you through the process. Lenders pay their loan officers a salary or commission.

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