Know what to expect: Mortgage Brokers vs. Loan Officers
Either a mortgage broker or a loan officer can assist you when it comes to locating a mortgage loan. As both give the same outcome (a new home), it's understandable to confuse the two job types. But for the application process, it will benefit you if you know they ways they differ.
About Mortgage Brokers
A mortgage broker (either a firm or an individual) is an independent agent for both the mortgage loan applicant and the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. You partner with a mortgage broker to examine your financial situation and find the lender who has the best loan for you. Your broker will submit your mortgage application to various lenders, and works with the chosen lender until the loan closes. Upon closing, the broker's commission is given by the borrower.
Loan officers work for a particular lending institution (such as a bank, credit union, etc.) who work with mortgages and other loan products from their place of employment alone. Although a loan officer may promote quite a variety of loans, they all are programs from that one lender.
Also called a "loan representative" or "account executive," a loan officer represents the borrower to the lending institution. The borrower is helped through the entire process, from loan selection to closing, by the mortgage banker. Lenders pay their loan officers a commission or salary.
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