Bloomfield Hills Mortgage, Broker, Loan Officer
Know what to expect: Mortgage Brokers vs. Loan Officers
When you're looking to get a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. Because both give the same outcome (a new home), people often confuse the two. But for the application process, it will benefit you if you know their differences.
What is a Mortgage Broker?
During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. A mortgage broker will look at your numbers to find out which lender is the best fit for you. You deliver your mortgage application to your broker, who offers it to one or more lenders. Your mortgage broker then guides your work with the lender chosen until the closing of the loan. Upon closing, the broker's commission comes from the borrower.
What is a Loan Officer?
The main difference between a mortgage broker and a loan officer is that the latter works on behalf of a lending institution (a bank, credit union, or others) to market and process loans solely originated from that institution. There may be a wide range of loans types to draw from even though all are products of that specific lender.
Also called a "loan representative" or "account executive," a loan officer represents the borrower to the lender. From choosing a loan to closing, a loan officer can guide a borrower through the process. Lenders give their mortgage bankers a commission or salary.
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