Know the difference: Mortgage Brokers and Loan Officers
When it's time to get a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. Because both reap the same result (a new home), it's understandable to confuse the two job types. However, it is valuable to understand the ways they differ so you know what to expect from them during your mortgage process.
What is a Mortgage Broker?
A mortgage broker is someone or group that acts as an independent agent for the mortgage loan borrower as well as the lender. A mortgage broker facilitates 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 credit union, bank, trust company, finance company, mortgage corporation or even a private investor. A mortgage broker will review your finances to determine which lender is the right fit for your loan needs. From application to closing, your mortgage broker works with you: submitting your mortgage application to a number of lenders, and walking you with the chosen lender through to the closing of your loan. The broker receives a commission from the borrower if the loan closes.
Mortgage Bankers work for a particular lending institution (such as a bank, credit union, etc.) who work with mortgages and other loans originated by their place of employment alone. They may have the ability to market loans to fit a variety of situations, but all the loans are products from the same lender.
Your mortgage banker represents you to the bank or other lending institution. The borrower is walked through the entire process, from loan selection to closing, by the mortgage banker. Either a salary or commission is given to mortgage brokers by their employers.
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