Mortgage Broker and Loan Officer

When you're looking to get a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. It's easy to confuse these since both will give the same result: a new home. Yet recognizing how they are different is advantageous to your mortgage loan process.

About Mortgage Brokers

A mortgage broker is someone or company that is an independent agent for both the mortgage loan borrower and the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. A mortgage broker can examine your finances to find out which lender is the best fit for your loan needs. You deliver your mortgage loan application to your broker, who presents it to a number of lenders. Your mortgage broker then guides your work with the lender of choice until the loan closes. The borrower gives a commission to the broker if the loan closes.

What is a Mortgage Banker?

Mortgage Bankers work for a particular lending institution (such as a bank) who process mortgages and other lending programs on behalf of their place of employment alone. They may be able to offer loans to fit many different situations, but all the loans are products of the same lender.

A loan officer represents you to the bank or other lending institution. The loan officer will guide you through the application, processing and closing of the loan. Either a salary or commission is given to mortgage brokers by their employers.