Mortgage Broker and Loan Officer

When you apply for a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. Because both a mortgage broker and mortgage banker will help you buy your new home, it's easy to confuse the two. However, it will be useful to recognize the difference between the two jobs so you have clear expectations of them during your mortgage application process.

About Mortgage Brokers

A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. Which lender offers the loan programs that is right for you? A mortgage broker will lead you to the best fit. You give your mortgage application to your broker, who presents it to several lenders. Your mortgage broker then helps you work with the lender chosen until closing. The borrower submits a commission to the broker upon closing.

About Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ loan officers to market, and process mortgage loans solely from that particular institution. While a mortgage banker may promote quite a range of loan programs, they will be products of that one lender.

Also known as a "loan representative" or "account executive," a mortgage banker represents the borrower to the lender. From choosing a loan product to closing, a mortgage banker can guide the borrower through the process. Lending institutions give their mortgage bankers a commission or salary.