Mortgage Broker or Loan Officer

When you're looking to get a mortgage loan, you should know the difference between a mortgage banker and a mortgage broker. As both a mortgage broker and lending officer will help you fund a new home, it's common to confuse the two. Yet knowing how they differ is important to the mortgage process.

Mortgage Brokers

A mortgage broker is an individual or company 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 may be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. A mortgage broker will analyze your numbers to determine which lender is the right fit for you. You deliver your loan application to your broker, who offers it to several lenders. Your mortgage broker then guides your work with the lender chosen until the closing of the loan. The borrower submits a commission to the broker if the loan closes.

Loan Officers

Mortgage Bankers represent a particular lending institution (such as a bank, credit union, etc.) who process mortgages and other loans originated by their employer alone. There can be an assortment of loans types to choose from although all are programs of that particular lender.

Your loan officer represents you to the bank or other lending institution. The borrower is walked through the entire process, from choosing a loan to closing, by the loan officer. Loan officers will be compensated with a commission or salary for their services by their employers.

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