Mortgage Broker or Loan Officer

When you work on your application for a mortgage loan, you should know the difference between a mortgage banker and a mortgage broker. It's easy to confuse the two because both will produce the same result: a new home. However, it is valuable to know how they differ so you have clear expectations of them as you enter your mortgage process.

About Mortgage Brokers

A mortgage broker is someone or company that 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 bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. A mortgage broker can consider your finances to determine which lender is the best fit for you. From application to closing, your mortgage broker facilitates the loan process: presenting your mortgage application to a number of lenders, and coordinating the process with the lender through to the closing of your loan. The broker gets a commission from the borrower if the loan closes.

Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process mortgage loans solely on behalf of that particular institution. While a loan officer may promote quite a range of loan programs, they are all products with that particular lender.

Also called a "loan representative" or "account executive," a mortgage banker represents the borrower to the lender. The borrower is helped through the whole process, from choosing a loan to closing, by the mortgage banker. Either a salary or commission is given to loan officers by their employers.

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