Mortgage Broker or Loan Officer
When it comes to locating a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. As a new home is the outcome of the work of both mortgage broker and loan officer, it's common to confuse them. Yet recognizing how they differ is important to the mortgage process.
What is a Mortgage Broker?
A mortgage broker (either a group or an individual) is an independent agent for both the mortgage loan borrower and the lender. 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 an individual, private investor. Which lender offers the loan programs that is right for you? A mortgage broker will lead you to the best one. From application to closing, your mortgage broker facilitates the loan process: submitting your application to a number of lenders, and coordinating the process with the lender through to closing. The broker receives a commission from the borrower if the loan closes.
About Mortgage Bankers
Lending Institutions (banks, finance companies, and others) employ mortgage bankers to promote, and process loans on behalf of that particular institution alone. Although a loan officer may promote quite a range of loan programs, they will be products with that specific lender.
Also called a "loan representative" or "account executive," a loan officer represents the borrower to the lending institution. A mortgage banker can walk the borrower through the application, processing and loan closing. Lenders compensate their mortgage bankers with a commission or salary.
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