Mortgage Broker or Mortgage Banker

Either a mortgage broker or a loan officer can help you when it comes to finding a mortgage loan. People frequently confuse the two since both will yield the same outcome: a new home. Yet it is important to recognize the ways they differ so you have clear expectations of them as you enter your mortgage application process.

Mortgage Brokers

A mortgage broker (either a group or an individual) is an independent agent for the mortgage loan borrower 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 mortgage loans that fits your needs? A mortgage broker will help you find the right one. You give your mortgage application to your broker, who submits it to one or more lenders. Your mortgage broker then assists your work with the lender chosen until the loan closes. The broker is given 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 loans from that particular institution alone. They may have the ability to promote loans to fit a variety of situations, but all the loans are programs from the same lender.

A loan officer (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. A mortgage banker will help you through the selection, processing and closing of the loan. Mortgage bankers may be paid a commission or salary for their services by their employers.

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