New Orleans Mortgage, Broker, Loan Officer

Know the difference: Mortgage Brokers vs. Loan Officers

When it's time to get a mortgage loan, you need to know the difference between a mortgage banker and a mortgage broker. Because a new home is the result of the work of both mortgage broker and loan officer, it's common to confuse the two. But for your application process, it can benefit you if you recognize how they are different.

Mortgage Brokers

During the mortgage loan process, an individual or company 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 bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Which lender offers the mortgage loans that is right for you? A mortgage broker will help you find the right fit. Your broker will submit your mortgage loan application to several lenders, and works with the lender of choice until closing. The borrower submits a commission to the broker when the loan closes.

What is a Mortgage Banker?

The most important difference between a mortgage broker and a loan officer is that a mortgage banker works for a lending institution (a bank, credit union, or others) to process loans solely originated from that institution. They may be able to promote loans to fit many different situations, but all the loans are programs of 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. A loan officer can help the borrower through the application, processing and closing of the loan. Lenders pay their loan officers a salary or commission.

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