Mortgage Broker and Loan Officer

When you need a mortgage loan, you need to know the difference between a mortgage broker and a mortgage banker. Since both reap the same result (a new home), it's easy to confuse the two. However, recognizing how they are different will be beneficial to your mortgage process.

What is a Mortgage Broker?

A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan borrower as well as the lender. 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 investor. A mortgage broker can analyze your numbers to find out which lender is the right fit for you. From application to closing, your mortgage broker works with you: submitting your mortgage application to several lenders, and coordinating the process with the lender through to closing. The broker is given a commission from the borrower at closing.

What is a Loan Officer?

Lending Institutions (banks, finance companies, and others) employ loan officers to offer, and process loans solely from that specific institution. They may have the ability to promote loans to fit a variety of situations, but all the loans will be programs of the same lender.

Your loan officer represents you to the bank or other lending institution. The borrower is helped through the entire process, from loan selection to closing, by the loan officer. Loan officers are compensated with a commission or salary for their services by their employers.

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