Mortgage Broker vs. Loan Officer

When you're looking to get a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. Because both a mortgage broker and lending officer will help you buy your new home, people often confuse the two. However, it is important to understand the difference between the two jobs so you have clear expectations of them during the mortgage application process.

Mortgage Brokers

A mortgage broker is someone or group that is an independent agent for the mortgage loan borrower as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. A mortgage broker can review your numbers to determine which lender is the right fit for your loan needs. Your broker will submit your mortgage application to several lenders, and works with the chosen lender until the loan closes. Upon closing, the broker's commission comes from the borrower.

What is a Loan Officer?

Mortgage Bankers represent a particular lending institution (such as a bank, credit union, etc.) who process mortgages and other lending programs from their company alone. While a loan officer may offer quite a range of loans, they will be programs from that specific lender.

Also known as a "loan representative" or "account executive," a mortgage banker represents the borrower to the lending institution. The borrower is walked through the whole process, from finding the loan to closing, by the mortgage banker. Mortgage bankers may be compensated with a commission or salary for their work by their employers.

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