Know what to expect: Mortgage Brokers vs. Loan Officers

When you need a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. People usually confuse the two job types because both will produce the same result: a new home. Yet recognizing the differences between them will be helpful to your mortgage loan process.

Mortgage Brokers

A mortgage broker (either a firm or an individual) is an independent agent for the mortgage loan borrower as well as the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. You use a mortgage broker to review your financial circumstance and find the lender who has the right mortgage loan for you. Your broker will offer your mortgage loan application to various lenders, and works with the lender of choice until closing. The broker gets a commission from the borrower at closing.

About Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to offer, and process mortgage loans on behalf of that particular institution alone. There can be a variety of loans types to draw from even though all are programs of that specific lending institution.

Your loan officer represents you to the bank or other lending institution. From choosing a loan program to closing, a loan officer can walk the borrower through the process. Either a salary or commission is paid to mortgage brokers by their employers.

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