Mortgage Broker vs. Loan Officer

Either a mortgage broker or a loan officer may help you when you need a mortgage . It's understandable to confuse the two job types since both will yield the same outcome: a new home. But as you begin your application process, it can benefit you if you know they ways they differ.

Mortgage Brokers

A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. Which lender offers the mortgage loans that is right for you? A mortgage broker will lead you to the right one. From application to closing, your mortgage broker facilitates the loan process: submitting your loan application to a number of lenders, and coordinating the process with the lender through to closing. The broker is given a commission from the borrower upon closing.

What is a Mortgage Banker?

Loan officers are representatives of a specific lending institution (such as a bank, credit union, etc.) who promote and process mortgages and other loan programs from their company alone. They may be able to offer loans to fit many different situations, but all the loans are programs from the same lender.

Your mortgage banker will represent you to the bank or other lending institution. A loan officer will guide the borrower through the application, processing and loan closing. Mortgage bankers can be paid a commission or salary for their work by their employers.