Mortgage Broker and Loan Officer
When you work on your application for a mortgage , you should know the difference between a mortgage broker and a loan officer. Because both yield the same result (a new home), people sometimes confuse the two job types. But as you enter the application process, it will benefit you if you understand how they differ.
What is a Mortgage Broker?
During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. A mortgage broker will analyze your finances to determine which lender is the right fit for you. From application to closing, your mortgage broker facilitates your loan process: offering your loan application to several lenders, and walking you with the chosen lender through to the closing of the loan. The broker gets a commission from the borrower upon closing.
Mortgage Bankers work for a specific lending institution (such as a bank, credit union, etc.) who process mortgages and other loan programs for their company alone. While a loan officer may offer quite a range of loan programs, they will be programs from that lender alone.
A loan officer (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lender. From choosing a loan program to closing, a loan officer will guide you through the process. Either a salary or commission is given to loan officers by their employers.
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