Mortgage Broker and Loan Officer

When you apply for a mortgage , you may work with a mortgage banker or you may choose to work with a mortgage broker. People usually confuse the two job types since both will give the same result: a new home. Yet it is useful to know how they differ so you have clear expectations of them as you enter your mortgage process.

Mortgage Brokers

A mortgage broker (either a firm or an individual) is an independent agent for the mortgage loan applicant 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 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, private investor. A mortgage broker can look at your numbers to find out which lender is the right fit for your loan needs. From application to closing, your mortgage broker works with you: submitting your application to a number of lenders, and walking you with the chosen lender through to closing. At closing, the broker's commission is paid by the borrower.

Loan Officers

Loan officers represent a particular lending institution (such as a bank, credit union, etc.) who process mortgages and other loan products originated by their employer alone. While a loan officer may market quite a variety of loan programs, they are all programs from that lender alone.

A mortgage banker (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lender. From finding a loan program to closing, a loan officer will guide a borrower through the process. Mortgage bankers may be paid a commission or salary for their services by their employers.