Mortgage Broker or Loan Officer

When you're looking to get a mortgage , you need to know the difference between a loan officer and a mortgage broker. Since both a mortgage broker and mortgage banker will help you buy your new home, it's common to confuse the two. But for your application process, it can help if you know their differences.

About Mortgage Brokers

A mortgage broker (either a group or an individual) is an independent agent for both the mortgage loan borrower and the lender. A mortgage broker facilitates things for you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even a private 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. A mortgage broker will review your numbers to determine which lender is the right fit for you. From application to closing, your mortgage broker works with you: submitting your application to a number of lenders, and coordinating the process with the lender through to the closing of the loan. The borrower pays a commission to the broker if the loan closes.

Mortgage Bankers

Mortgage Bankers work for a specific lending institution (such as a bank) who work with mortgages and other loans from their company alone. Although a loan officer may promote quite a range of loan programs, they are all products from that particular lender.

Your mortgage banker will represent you to the bank or other lending institution. The mortgage banker will guide the borrower through the application, processing and closing of the loan. Lenders give their loan officers a salary or commission.