Mortgage Broker or Loan Officer
When you work on your application for a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. People can confuse the two as both will yield the same outcome: a new home. However, it will be helpful to understand how they differ so you have clear expectations of them as you enter your mortgage application process.
About Mortgage Brokers
A mortgage broker is a person or firm that serves as an independent agent for both the mortgage loan applicant and the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. A mortgage broker can consider your finances to determine which lender is the right fit for your loan needs. From application to closing, your mortgage broker works with you: presenting your application to a number of lenders, and coordinating the process with the lender through to the closing of the loan. The borrower submits a commission to the broker if the loan closes.
What is a Mortgage Banker?
The main difference between a mortgage broker and a loan officer is that a loan officer is employed by a lending institution (a bank, credit union, or others) to process loans only from the programs of that institution. There can be a wide range of loans types to choose from although all are programs of that specific lender.
Your mortgage banker represents you to the bank or other lending institution. The borrower is walked through the entire process, from choosing a loan to closing, by the mortgage banker. Mortgage bankers will be compensated with a commission or salary for their work by their employers.
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