Know what to expect: Mortgage Brokers and Mortgage Bankers

Either a mortgage broker or a mortgage banker can assist you when you work on your application for a mortgage . Because both a mortgage broker and lending officer will help you fund a new home, people can confuse them. Yet knowing the ways they differ will be advantageous to the mortgage process.

About Mortgage Brokers

A mortgage broker is an individual or company that acts as 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 an individual investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Which lender has the mortgage loans that is right for you? A mortgage broker will help you find the best fit. Your broker will offer your mortgage loan application to a handful of lenders, and works with the lender of choice until closing. The broker is given a commission from the borrower at closing.

What is a Loan Officer?

Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process mortgage loans solely from that specific institution. They may have the ability to promote loans to fit a variety of situations, but all the loans are programs from the same lender.

Also called a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lender. From selecting a loan product to closing, a mortgage banker will guide you through the process. Lending institutions pay their mortgage bankers a commission or salary.