Lees Summit Mortgage, Broker, Loan Officer

Mortgage Broker vs. Mortgage Banker

When you need a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. Because both yield the same result (a new home), it's understandable to confuse the two job types. But as you begin the application process, it can benefit you if you know how they are different.

Mortgage Brokers

A mortgage broker is a person or company that is an independent agent for the mortgage loan borrower as well as the lender. A mortgage broker coordinates things for you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even an individual 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 an individual, private investor. A mortgage broker will consider your finances to find out which lender is the best fit for your loan needs. You give your application to your broker, who submits it to various lenders. Your mortgage broker then assists your work with the lender of choice until closing. The borrower gives a commission to the broker at closing.

Mortgage Bankers

The main difference between a mortgage broker and a loan officer is that a loan officer works for a lending institution (a bank, credit union, or others) to offer and process loans solely from the products of that institution. They may have the ability to promote loans to fit a variety of situations, but all the loans will be products of the same lender.

A loan officer (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. A mortgage banker will guide you through the selection, processing and loan closing. Loan officers are given a commission or salary for their services by their employers.

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