Mortgage Broker and Mortgage Banker

Either a mortgage broker or a loan officer may work with you when you're looking to get a mortgage . As both a mortgage broker and lending officer can help you purchase a new home, people often confuse them. But as you begin your application process, it will benefit you if you know how they are different.

Mortgage Brokers

A mortgage broker (either a group or an individual) is an independent agent for both the mortgage loan applicant and the lender. A mortgage broker facilitates things between 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 investor. A mortgage broker can look at your financial situation to determine which lender is the best fit for your loan needs. Your broker will offer your mortgage loan application to one or more lenders, and works with the chosen lender until closing. The borrower submits a commission to the broker at closing.

About Loan Officers

Loan officers are representatives of a particular lending institution (such as a bank) who process mortgages and other loan programs from their employer alone. There may be a wide range of loans types to choose from, but all are programs of that specific lender.

Your mortgage banker will represent you to the bank or other lending institution. From selecting a loan program to closing, a mortgage banker can walk a borrower through the process. Either a salary or commission is paid to loan officers by their employers.