Know what to expect: Mortgage Brokers vs. Loan Officers

When you're looking to get a mortgage loan, you should know the difference between a loan officer and a mortgage broker. Since a new home is the outcome of the work of both mortgage broker and mortgage banker, people usually confuse the two. But as you enter the application process, it will benefit you if you understand their differences.

What is a Mortgage Broker?

A mortgage broker is a person or company that serves as an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. Which lender offers the loans that is right for you? A mortgage broker will help you find the right one. You deliver your mortgage loan application to your broker, who presents it to a number of lenders. Your mortgage broker then guides your work with the lender of choice until closing. At closing, the broker's commission comes from the borrower.

About Loan Officers

The main difference between a mortgage broker and a loan officer is that the latter is employed by a lending institution (a bank, credit union, or others) to process loans only originated from that institution. They may be able to promote loans to fit many different situations, but all the loans will be products of the same lender.

A loan officer (also called an "account executive" or "loan representative") represents the borrower to the lender. The borrower is helped through the whole process, from selecting a loan to closing, by the loan officer. Either a salary or commission is paid to mortgage brokers by their employers.

In the market for a new mortgage loan? We'd be thrilled to answer your questions about your mortgage needs! Call us at 8165258000. Want to get started? Apply Now.

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