Mortgage Broker vs. Loan Officer
When you need a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. Because both yield the same result (a new home), people often confuse the two job types. But as you begin the application process, it can benefit you if you understand how they differ.
What is a Mortgage Broker?
During the mortgage loan process, an individual or group who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. A mortgage broker coordinates things for you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation 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. You partner with a mortgage broker to look at your financial circumstance and find the lender who has the right loan for you. From application to closing, your mortgage broker facilitates your loan process: presenting your mortgage application to several lenders, and coordinating the process with the lender through to the closing of the loan. The broker gets a commission from the borrower when the loan closes.
About Loan Officers
The biggest 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 offer and process loans only from the programs of that institution. Although a mortgage banker may offer quite a range of loans, they all are products with that lender alone.
Also known as a "loan representative" or "account executive," a mortgage banker acts of behalf of the borrower to the lending institution. From selecting a loan product to closing, a mortgage banker can walk you through the process. Mortgage bankers are compensated with a commission or salary for their services by their employers.
Shopping for a mortgage? We'll be glad to answer your questions about your mortgage needs! Give us a call at
(215)741-3131. Ready to get started? Apply Now