Mortgage Broker vs. Loan Officer

When you apply for a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. People can confuse these because both will reap the same result: a new home. Yet it will be helpful to know the ways they differ so you know what to expect from them during your mortgage process.

What is a Mortgage Broker?

A mortgage broker (either a group or an individual) is an independent agent for both the mortgage loan applicant and the lender. A mortgage broker coordinates things for you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. You work with a mortgage broker to review your financial circumstance and lead you to the lender who has the right mortgage loan for you. Your broker will submit your mortgage application to a handful of lenders, and works with the lender of choice until closing. The borrower gives a commission to the broker when the loan closes.

What is a Mortgage Banker?

Loan officers work for a particular lending institution (such as a bank) who work with mortgages and other loan products originated by their employer alone. They may be able to offer loans to fit many different situations, but all the loans will be programs from the same lender.

Also known as a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lending institution. The loan officer will help you through the application, processing and closing of the loan. Lending institutions give their mortgage bankers 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