Mortgage Broker or Loan Officer

Either a mortgage broker or a loan officer can help you when you work on your application for a mortgage loan. Since a new home is the result of the work of both mortgage broker and mortgage banker, it's understandable to confuse them. But for the application process, it will help if you know their differences.

About Mortgage Brokers

During the mortgage loan process, an individual or group 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 credit union, bank, trust company, finance company, mortgage corporation or even a private investor. Which lender has the mortgage loans that is right for you? A mortgage broker will guide you to the best one. You give your mortgage application to your broker, who presents it to one or more lenders. Your mortgage broker then assists your work with the lender chosen until the loan closes. If the loan closes, the broker's commission is paid by the borrower.

About Mortgage Bankers

The main difference between a mortgage broker and a mortgage banker is that the latter is employed by a lending institution (a bank, credit union, or others) to process loans solely from that institution. There can be a wide variety of loans types to choose from even though all are products of that particular lender.

Also known as a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lending institution. The borrower is helped through the whole process, from choosing a loan to closing, by the loan officer. Loan officers can be given a commission or salary for their work by their employers.