Mortgage Broker and Loan Officer

Either a mortgage broker or a loan officer can work with you when it's time to apply for a mortgage loan. People often confuse these as both will reap the same result: a new home. However, knowing how they are different will be valuable to the mortgage loan process.

About Mortgage Brokers

During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. A mortgage broker facilitates things between you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even a private 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 a private investor. You partner with a mortgage broker to consider your financial circumstance and find the lender who has the right mortgage loan for you. You give your loan application to your broker, who presents it to a number of lenders. Your mortgage broker then guides your work with the lender chosen until closing. The borrower pays a commission to the broker at closing.

What is a Loan Officer?

Loan officers represent a specific lending institution (such as a bank) who work with mortgages and other lending programs on behalf of their employer alone. There can be a wide range of loans types to draw from even though all are programs of that particular lender.

A loan officer represents you to the bank or other lending institution. From choosing a loan product to closing, a loan officer will guide the borrower through the process. Lenders give their loan officers a salary or commission.