Mortgage Broker or Mortgage Banker

When you're looking to get a mortgage loan, you need to know the difference between a loan officer and a mortgage broker. As both a mortgage broker and lending officer can help you fund your new home, people frequently confuse them. However, it will be helpful to recognize how they differ so you know what to expect from them during the mortgage process.

Mortgage Brokers

A mortgage broker is an individual or company that works as an independent agent for the mortgage loan borrower 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 investor. A mortgage broker will review your financial situation to find out which lender is the right fit for your loan needs. Your broker will present your mortgage application to a handful of lenders, and works with the chosen lender until closing. At closing, the broker's commission is paid by the borrower.

Loan Officers

Loan officers are representatives of a specific lending institution (such as a bank, credit union, etc.) who process mortgages and other loan programs on behalf of their company alone. While a mortgage banker may offer quite a range of loan programs, they are all programs of that lender alone.

Also called a "loan representative" or "account executive," a loan officer represents the borrower to the lender. The borrower is guided through the whole process, from finding the loan to closing, by the loan officer. Mortgage bankers may be paid a commission or salary for their services by their employers.

Looking for a loan? We'll be glad to talk about our many mortgage solutions! Call us at (512) 291-6100. Want to get started? Apply Now.

Mortgage Questions?

Do you have a question regarding a mortgage program?

Contact Information
Your Question

English Spanish