Mortgage Broker vs. Loan Officer

When you work on your application for a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. People usually confuse these since both will reap the same result: a new home. Yet knowing how they differ is advantageous to the mortgage process.

About Mortgage Brokers

During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. You use a mortgage broker to analyze your financial situation and lead you to the lender who has the right loan program for you. From application to closing, your mortgage broker works with you: presenting your loan application to several lenders, and walking you with the chosen lender through to the closing of your loan. The borrower gives a commission to the broker when the loan closes.

Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to market, and process loans solely originated by that particular institution. They may be able to offer loans to fit many different situations, but all the loans will be products of the same lender.

Also called a "loan representative" or "account executive," a mortgage banker represents the borrower to the lending institution. The mortgage banker will walk the borrower through the selection, processing and loan closing. Lenders pay their loan officers a commission or salary.

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Channel Mortgage LLC

Connecting the Dots to Home Ownership

55-25 69th Street 1st Floor
Maspeth, NY 11378-1806