Mortgage Broker or Loan Officer

Either a mortgage broker or a loan officer can work with you when you apply for a mortgage loan. Because both glean the same result (a new home), people can confuse them. But as you enter your application process, it can help if you understand their differences.

Mortgage Brokers

During the mortgage loan process, an individual or firm who is an independent agent for the mortgage loan applicant as well as the lender is a mortgage broker. A mortgage broker coordinates 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, 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 consider your financial situation to determine which lender is the right fit for your loan needs. Your broker will offer your mortgage application to one or more lenders, and works with the chosen lender until the loan closes. The borrower gives a commission to the broker if the loan closes.

About Loan Officers

Lending Institutions (banks, finance companies, and others) employ loan officers to market, and process loans on behalf of that particular institution alone. There may be an assortment of loans types to draw from even though all are programs of that particular lender.

A loan officer represents you to the bank or other lending institution. The borrower is walked through the entire process, from loan selection to closing, by the loan officer. Lenders compensate their loan officers with a commission or salary.