Mortgage Broker or Loan Officer

Either a mortgage broker or a mortgage banker may assist you when it comes to locating a mortgage . As both reap the same result (a new home), people usually confuse them. But as you enter the application process, it can help if you understand how they differ.

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. A mortgage broker coordinates things between you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Which lender has the loans that fits your needs? A mortgage broker will help you find the right fit. You give your mortgage loan application to your broker, who presents it to one or more lenders. Your mortgage broker then assists your work with the lender chosen until closing. At closing, the broker's commission comes from the borrower.

Loan Officers

Lending Institutions (banks, finance companies, and others) employ loan officers to market, and process loans originated by that specific institution alone. There may be a variety of loans types to choose from, but all are products of that particular lender.

A mortgage banker represents you to the bank or other lending institution. A mortgage banker can help the borrower through the application, processing and loan closing. Either a salary or commission is paid to mortgage brokers by their employers.