Mortgage Broker or Loan Officer

When you need a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. Because a new home is the result of the work of both mortgage broker and mortgage banker, people can confuse the two. Yet it is valuable to know the ways they differ so you have clear expectations of them during the mortgage application process.

About Mortgage Brokers

A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. A mortgage broker will examine your numbers to determine which lender is the right fit for you. From application to closing, your mortgage broker facilitates the loan process: presenting your mortgage application to a number of lenders, and walking you with the chosen lender through to closing. The broker receives a commission from the borrower at closing.

What is a Mortgage Banker?

Loan officers are representatives of a specific lending institution (such as a bank) who process mortgages and other loan products from their place of employment alone. While a mortgage banker may promote quite a range of loan programs, they all are programs of that lender alone.

Your loan officer represents you to the bank or other lending institution. The mortgage banker will walk you through the application, processing and closing of the loan. Mortgage bankers can be given a commission or salary for their services by their employers.