Mortgage Broker or Loan Officer

When you work on your application for a mortgage , you should know the difference between a loan officer and a mortgage broker. Since a new home is the outcome of the work of both mortgage broker and loan officer, people can confuse the two job types. Yet it is useful to recognize the difference between them so you have clear expectations of them as you enter your mortgage process.

Mortgage Brokers

A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan borrower as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. You partner with a mortgage broker to analyze your financial situation and lead you to the lender who has the best loan program for you. From application to closing, your mortgage broker facilitates the loan process: submitting your application to several lenders, and coordinating the process with the lender through to the closing of your loan. At closing, the broker's commission is given by the borrower.

What is a Mortgage Banker?

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to offer, and process mortgage loans on behalf of that particular institution alone. Although a mortgage banker may offer quite a variety of loan programs, they all are programs with that particular lender.

A mortgage banker will represent you to the bank or other lending institution. The mortgage banker will guide you through the application, processing and closing of the loan. Loan officers are paid a commission or salary for their work by their employers.