Mortgage Broker or Loan Officer

When it's time to find a mortgage loan, you need to know the difference between a mortgage banker and a mortgage broker. Since both reap the same result (a new home), it's easy to confuse the two job types. But for your application process, it can benefit you if you recognize their differences.

Mortgage Brokers

A mortgage broker is an individual or group that works 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 credit union, bank, trust company, finance company, mortgage corporation 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 an individual, private investor. A mortgage broker can look at your financial situation to determine which lender is the right fit for your loan needs. You deliver your loan application to your broker, who submits it to one or more lenders. Your mortgage broker then assists your work with the lender of choice until closing. The borrower pays a commission to the broker upon closing.

Mortgage Bankers

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 promote and process loans solely from that institution. While a mortgage banker may offer quite a range of loan programs, they will be programs of that lender alone.

Your mortgage banker represents you to the bank or other lending institution. The borrower is walked through the whole process, from finding the loan to closing, by the mortgage banker. Lending institutions give their loan officers a commission or salary.

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