Mortgage Broker and Mortgage Banker

Either a mortgage broker or a loan officer may help you when you apply for a mortgage . Since both yield the same result (a new home), people can confuse the two. Yet it will be important to recognize the ways they differ so you know what to expect from them as you enter the mortgage application process.

Mortgage Brokers

A mortgage broker (either a company or an individual) is an independent agent for both the mortgage loan applicant and the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Which lender offers the mortgage loans that is best for you? A mortgage broker will guide you to the best one. Your broker will present your loan application to one or more lenders, and works with the chosen lender until the loan closes. The broker is given a commission from the borrower if the loan closes.

About Loan Officers

Mortgage Bankers work for a particular lending institution (such as a bank) who work with mortgages and other loan programs originated by their employer alone. Although a mortgage banker may market quite a range of loans, they are all programs from that particular lender.

Your loan officer represents you to the bank or other lending institution. The borrower is walked through the whole process, from loan selection to closing, by the loan officer. Loan officers can be compensated with a commission or salary for their services by their employers.