Mortgage Broker vs. Mortgage Banker
When it comes to getting a mortgage loan, you need to know the difference between a loan officer and a mortgage broker. It's common to confuse them because both will give the same result: a new home. Yet understanding how they differ will be beneficial to the mortgage process.
A mortgage broker (either a group 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 credit union, bank, trust company, finance company, mortgage corporation or even a private investor. Which lender has the loans that is right for you? A mortgage broker will guide you to the right fit. From application to closing, your mortgage broker works with you: offering your loan application to several lenders, and coordinating the process with the lender through to the closing of your loan. The borrower submits a commission to the broker at closing.
What is a Loan Officer?
Mortgage Bankers are representatives of a particular lending institution (such as a bank, credit union, etc.) who process mortgages and other loan products originated by their place of employment alone. While a mortgage banker may offer quite a variety of loans, they will be products from that lender alone.
Also known as a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lending institution. The borrower is guided through the whole process, from loan selection to closing, by the mortgage banker. Either a salary or commission is paid to mortgage brokers by their employers.
Are you looking for a mortgage loan? We'll be glad to talk about your mortgage needs! Call us at
(334) 285-8850. Ready to begin? Apply Now