Mortgage Broker vs. Mortgage Banker

When you work on your application for a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. As both a mortgage broker and lending officer will help you purchase your new home, it's easy to confuse the two. Yet knowing the ways they differ will be helpful to the mortgage process.

About Mortgage Brokers

A mortgage broker is someone or company that works as an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. A mortgage broker can look at your finances to determine which lender is the best fit for your loan needs. Your broker will offer your mortgage loan application to one or more lenders, and works with the chosen lender until closing. The broker gets a commission from the borrower when the loan closes.

Loan Officers

Loan officers are representatives of a particular lending institution (such as a bank) who work with mortgages and other loans from their company alone. While a mortgage banker may offer quite a range of loans, they will be products with that particular lender.

Your loan officer represents you to the bank or other lending institution. From finding a loan program to closing, a mortgage banker can walk you through the process. Loan officers will be given a commission or salary for their work by their employers.