Mortgage Broker and Loan Officer

Either a mortgage broker or a loan officer may work with you when it's time to locate a mortgage . It's easy to confuse the two as both will give the same result: a new home. But for your application process, it can benefit you if you understand how they differ.

Mortgage Brokers

A mortgage broker is a person or firm that is an independent agent for both the mortgage loan applicant and the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. A mortgage broker can look at your financial situation to determine which lender is the best fit for you. From application to closing, your mortgage broker works with you: submitting your application to several lenders, and walking you with the chosen lender through to the closing of the loan. The broker gets a commission from the borrower upon closing.

What is a Mortgage Banker?

Loan officers work for a particular lending institution (such as a bank) who work with mortgages and other loan programs from their company alone. There can be a wide range of loans types to choose from although all are programs of that particular lender.

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