Know what to expect: Mortgage Brokers vs. Loan Officers
When you need a mortgage , you need to know the difference between a mortgage broker and a loan officer. Since both produce the same outcome (a new home), people can confuse them. But for your application process, it can help if you understand how they are different.
About Mortgage Brokers
During the mortgage loan process, an individual or company who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. 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, private investor. Which lender offers the loan programs that fits your needs? A mortgage broker will help you find the right fit. Your broker will present your loan application to several lenders, and works with the chosen lender until the loan closes. The broker receives a commission from the borrower upon closing.
About Mortgage Bankers
The most important difference between a mortgage broker and a mortgage banker is that the latter works for a lending institution (a bank, credit union, or others) to market and process loans only originated from the products of that institution. While a loan officer may offer quite a variety of loans, they all are products with that lender alone.
A loan officer represents you to the bank or other lending institution. From finding a loan to closing, a loan officer will help a borrower through the process. Either a salary or commission is given to loan officers by their employers.
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