Mortgage Broker and Loan Officer

When you apply for a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Since both yield the same result (a new home), it's common to confuse the two job types. But as you enter the application process, it can benefit you if you understand their differences.

What is a Mortgage Broker?

A mortgage broker is an individual or group that is an independent agent for the mortgage loan applicant as well as the lender. A mortgage broker facilitates 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 a private 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. Which lender offers the mortgage loans that fits your needs? A mortgage broker will help you find the right one. You deliver your loan application to your broker, who presents it to one or more lenders. Your mortgage broker then helps you work with the lender chosen until closing. If the loan closes, the broker's commission comes from the borrower.

About Mortgage Bankers

Loan officers represent a specific lending institution (such as a bank) who work with mortgages and other loans originated by their employer alone. Although a mortgage banker may offer quite a variety of loan programs, they will be programs of that lender alone.

A loan officer (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. From selecting a loan to closing, a loan officer can guide the borrower through the process. Lenders pay their mortgage bankers a commission or salary.

Shopping for a mortgage loan? We'd be thrilled to answer your questions about your mortgage needs! Call us at (718) 639-9500. Ready to begin? Apply Now.

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