Know what to expect: Mortgage Brokers vs. Loan Officers

Either a mortgage broker or a loan officer may help you when it comes to getting a mortgage . As both yield the same result (a new home), people sometimes confuse them. However, knowing how they are different is helpful to the mortgage process.

About Mortgage Brokers

During the mortgage loan process, an individual or group who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. 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 bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Which lender has the mortgage loans that fits your financial situation? A mortgage broker will help you find the best fit. You give your loan application to your broker, who submits it to various lenders. Your mortgage broker then guides your work with the lender chosen until closing. At closing, the broker's commission is paid by the borrower.

About Loan Officers

Mortgage Bankers work for a particular lending institution (such as a bank, credit union, etc.) who work with mortgages and other loan products on behalf of their company alone. Although a mortgage banker may offer quite a range of loan programs, they will be programs with that one lender.

A mortgage banker represents you to the bank or other lending institution. From finding a loan program to closing, a mortgage banker can help the borrower through the process. Lending institutions give their mortgage bankers a commission or salary.