Know what to expect: Mortgage Brokers vs. Loan Officers
When you apply for a mortgage , you should know the difference between a mortgage broker and a mortgage banker. Since both a mortgage broker and lending officer will help you purchase a new home, it's common to confuse the two. Yet knowing how they are different will be valuable to the mortgage loan process.
A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan borrower as well as the lender. A mortgage broker facilitates things between you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. A mortgage broker can consider your financial situation to determine which lender is the best fit for you. From application to closing, your mortgage broker works with you: submitting your loan application to several lenders, and walking you with the chosen lender through to closing. The borrower gives a commission to the broker if the loan closes.
About Loan Officers
Lending Institutions (banks, finance companies, and others) employ mortgage bankers to promote, and process mortgage loans solely from that specific institution. They may have the ability to market loans to fit many different situations, but all the loans are programs from the same lender.
Also known as a "loan representative" or "account executive," a mortgage banker represents the borrower to the lender. A mortgage banker can help the borrower through the selection, processing and closing of the loan. Either a salary or commission is paid to loan officers by their employers.
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