Mortgage Broker vs. Loan Officer
When you work on your application for a mortgage , you need to know the difference between a loan officer and a mortgage broker. Because a new home is the result of the work of both mortgage broker and loan officer, people usually confuse the two job types. But for your application process, it will help if you understand their differences.
What is a Mortgage Broker?
A mortgage broker is someone or firm that works as an independent agent for the mortgage loan applicant as well as the lender. A mortgage broker facilitates things for you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even an individual, 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. Which lender offers the mortgage loans that fits your needs? A mortgage broker will lead you to the right fit. Your broker will offer your loan application to a handful of lenders, and works with the lender of choice until closing. The borrower pays a commission to the broker at closing.
About Loan Officers
Loan officers work for a particular lending institution (such as a bank) who process mortgages and other loan programs for their place of employment alone. They may have the ability to market loans to fit a variety of situations, but all the loans will be programs of the same lender.
A mortgage banker (also called an "account executive" or "loan representative") represents the borrower to the lender. The borrower is helped through the entire process, from finding the loan to closing, by the loan officer. Mortgage bankers may be compensated with a commission or salary for their work by their employers.
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