Mortgage Broker or Loan Officer

When you're looking to get a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. Since a new home is the outcome of the work of both mortgage broker and mortgage banker, people can confuse them. But as you begin the application process, it can benefit you if you know how they differ.

Mortgage Brokers

During the mortgage loan process, an individual or group who is an independent agent for the mortgage loan borrower as well as the lender is a mortgage broker. 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, 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 use a mortgage broker to look at your financial circumstance and lead you to the lender who has the best mortgage loan for you. Your broker will present your loan application to one or more lenders, and works with the chosen lender until closing. The borrower pays a commission to the broker if the loan closes.

About Loan Officers

Loan officers are representatives of a specific lending institution (such as a bank) who work with mortgages and other loan products from their employer alone. They may be able to promote loans to fit many different situations, but all the loans are programs of the same lender.

Your loan officer will represent you to the bank or other lending institution. The mortgage banker can walk the borrower through the application, processing and closing of the loan. Either a salary or commission is given to mortgage brokers by their employers.