Mortgage Broker vs. Loan Officer
Either a mortgage broker or a loan officer can help you when you need a mortgage . As both reap the same outcome (a new home), it's common to confuse the two job types. But as you begin your application process, it can benefit you if you recognize they ways they differ.
About Mortgage Brokers
A mortgage broker (either a firm or an individual) is an independent agent for both the mortgage loan applicant and the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. You partner with a mortgage broker to review your financial circumstance and lead you to the lender who has the right mortgage loan for you. You deliver your mortgage application to your broker, who presents it to various lenders. Your mortgage broker then assists your work with the lender chosen until closing. The broker gets a commission from the borrower if the loan closes.
About Loan Officers
Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process mortgage loans solely originated by that specific institution. They may have the ability to market loans to fit a variety of situations, but all the loans are products of the same lender.
Also known as a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lending institution. From finding a loan product to closing, a mortgage banker will walk you through the process. Either a salary or commission is paid to mortgage brokers by their employers.
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