Mortgage Broker or Loan Officer

When you're looking to get a mortgage loan, you should know the difference between a mortgage broker and a loan officer. Since both give the same outcome (a new home), people usually confuse the two job types. However, it is useful to understand the difference between the two jobs so you have clear expectations of them as you enter the mortgage process.

Mortgage Brokers

During the mortgage loan process, an individual or group who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. A mortgage broker coordinates 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, 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. You work with a mortgage broker to review your financial circumstance and find the lender who has the best loan program for you. You give your mortgage loan application to your broker, who presents it to one or more lenders. Your mortgage broker then assists your work with the lender chosen until closing. At closing, the broker's commission comes from the borrower.

What is a Mortgage Banker?

Loan officers work for a specific lending institution (such as a bank) who market and process mortgages and other loan products originated by their company alone. While a mortgage banker may offer quite a range of loan programs, they all are programs of that one lender.

Your loan officer will represent you to the bank or other lending institution. The loan officer can walk the borrower through the application, processing and closing of the loan. Lenders compensate their loan officers with a commission or salary.