Mortgage Broker or Loan Officer

When you're looking to get a mortgage , you need to know the difference between a mortgage banker and a mortgage broker. As both a mortgage broker and mortgage banker can help you buy a new home, people can confuse them. But as you begin your application process, it can benefit you if you know how they differ.

Mortgage Brokers

During the mortgage loan process, an individual or company who is an independent agent for the mortgage loan applicant as well as the lender is a mortgage broker. 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 an individual investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. Which lender has the loan programs that is best for you? A mortgage broker will help you find the best one. You give your loan application to your broker, who submits it to a number of lenders. Your mortgage broker then guides your work with the lender of choice until closing. When the loan closes, the broker's commission is given by the borrower.

Loan Officers

The biggest difference between a mortgage broker and a mortgage banker is that a mortgage banker works on behalf of a lending institution (a bank, credit union, or others) to process loans solely originated from that institution. They may have the ability to offer loans to fit a variety of situations, but all the loans will be products from the same lender.

A loan officer (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. The borrower is walked through the whole process, from loan selection to closing, by the loan officer. Mortgage bankers are paid a commission or salary for their services by their employers.