Mortgage Broker and Loan Officer

Either a mortgage broker or a mortgage banker can help you when it's time to apply for a mortgage loan. As both a mortgage broker and lending officer will help you fund your new home, people frequently confuse them. However, it will be valuable to understand the difference between the two jobs so you have clear expectations of them during your mortgage application process.

What is a Mortgage Broker?

During the mortgage loan process, an individual or group who is an independent agent for the mortgage loan borrower as well as the lender is a mortgage broker. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. A mortgage broker can review your numbers to find out which lender is the right fit for you. You deliver your mortgage loan application to your broker, who offers it to various lenders. Your mortgage broker then guides your work with the lender of choice until the closing of the loan. The borrower pays a commission to the broker at closing.

About Mortgage Bankers

The biggest difference between a mortgage broker and a loan officer is that the latter is employed by a lending institution (a bank, credit union, or others) to promote and process loans solely from the products of that institution. Although a mortgage banker may offer quite a variety of loan programs, they all are products with that lender alone.

A mortgage banker (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lender. The mortgage banker will help you through the selection, processing and loan closing. Either a salary or commission is paid to loan officers by their employers.

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