Know the difference: Mortgage Brokers vs. Loan Officers

When it's time to get a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. It's easy to confuse these because both will yield the same result: a new home. Yet it is beneficial to know the difference between the two jobs so you know what to expect from them during your mortgage application process.

What is a Mortgage Broker?

A mortgage broker (either a firm or an individual) is an independent agent for the mortgage loan borrower as well as the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Which lender offers the mortgage loans that is best for you? A mortgage broker will help you find the best one. Your broker will submit your loan application to one or more lenders, and works with the chosen lender until closing. Upon closing, the broker's commission is given by the borrower.

About Loan Officers

Loan officers are representatives of a specific lending institution (such as a bank, credit union, etc.) who promote and process mortgages and other loans originated by their company alone. There may be a wide range of loans types to draw from, but all are products of that particular lending institution.

A loan officer (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. From finding a loan program to closing, a mortgage banker can guide you through the process. Either a salary or commission is given to loan officers by their employers.