Mortgage Broker vs. Loan Officer
When it's time to locate a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. As both give the same outcome (a new home), people can confuse the two. But as you enter the application process, it will help if you recognize they ways they differ.
What is a Mortgage Broker?
During the mortgage loan process, an individual or company who is an independent agent for the mortgage loan borrower as well as the lender is a mortgage broker. A mortgage broker coordinates things for 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 credit union, bank, trust company, finance company, mortgage corporation or even a private investor. You work with a mortgage broker to review your financial circumstance and find the lender who has the right loan program for you. Your broker will offer your mortgage loan application to several lenders, and works with the lender of choice until the loan closes. The broker gets a commission from the borrower if the loan closes.
About Loan Officers
Loan officers work for a particular lending institution (such as a bank) who work with mortgages and other lending programs from their company alone. There can be a wide variety of loans types to choose from, but all are products of that specific lender.
Your loan officer will represent you to the bank or other lending institution. The mortgage banker can walk the borrower through the selection, processing and closing of the loan. Loan officers can be paid a commission or salary for their work by their employers.
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