Mortgage Broker vs. Loan Officer

When you're looking to get a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. Because both give the same result (a new home), people frequently confuse the two. Yet knowing how they differ is important to your mortgage loan process.

Mortgage Brokers

During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. A mortgage broker coordinates 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, private investor. You work with a mortgage broker to examine your financial circumstance and lead you to the lender who has the right loan program for you. Your broker will present your mortgage application to several lenders, and works with the chosen lender until the loan closes. The broker receives a commission from the borrower at closing.

What is a Loan Officer?

Lending Institutions (banks, finance companies, and others) employ loan officers to offer, and process mortgage loans from that particular institution alone. There may be a variety of loans types to draw from although all are products of that specific lender.

Your loan officer will represent you to the bank or other lending institution. From finding a loan product to closing, a loan officer will walk you through the process. Lending institutions give their loan officers a commission or salary.