Mortgage Broker or Loan Officer

When you work on your application for a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. It's easy to confuse them since both will yield the same result: a new home. Yet understanding the ways they differ is valuable to the mortgage loan process.

About Mortgage Brokers

During the mortgage loan process, an individual or company who is an independent agent for the mortgage loan applicant as well as the lender is a mortgage broker. A mortgage broker facilitates things between you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even a 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 an individual investor. You use a mortgage broker to look at your financial situation and lead you to the lender who has the best mortgage loan for you. You give your application to your broker, who presents it to various lenders. Your mortgage broker then assists your work with the lender chosen until the closing of the loan. The broker receives a commission from the borrower upon closing.

What is a Mortgage Banker?

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to market, and process mortgage loans on behalf of that particular institution alone. While a loan officer may promote quite a range of loan programs, they will be products of that one lender.

Also called a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lending institution. The mortgage banker can help you through the application, processing and loan closing. Lenders compensate their mortgage bankers with a commission or salary.

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