Bloomfield Hills Mortgage, Broker, Loan Officer
Know the difference: Mortgage Brokers and Loan Officers
When you apply for a mortgage loan, you should know the difference between a loan officer and a mortgage broker. Because a new home is the result of the work of both mortgage broker and loan officer, it's understandable to confuse the two job types. However, recognizing how they are different will be beneficial to the mortgage loan process.
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 bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. A mortgage broker can look at your finances to determine which lender is the right fit for your loan needs. You deliver your loan application to your broker, who presents it to various lenders. Your mortgage broker then helps you work with the lender chosen until the closing of the loan. The borrower gives a commission to the broker upon closing.
Loan officers represent a particular lending institution (such as a bank) who work with mortgages and other loan products on behalf of their place of employment alone. There may be a variety of loans types to choose from although all are programs of that specific lender.
Also called a "loan representative" or "account executive," a loan officer represents the borrower to the lending institution. The borrower is helped through the entire process, from selecting a loan to closing, by the loan officer. Loan officers are paid a commission or salary for their work by their employers.
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