Mortgage Broker or Loan Officer

When you're looking to get a mortgage , you should know the difference between a mortgage broker and a loan officer. People can confuse these since both will yield the same outcome: a new home. But as you enter your application process, it can help if you understand how they are different.

What is a Mortgage Broker?

A mortgage broker is a person or company that 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 bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. You partner with a mortgage broker to review your financial situation and find the lender who has the right mortgage loan for you. From application to closing, your mortgage broker facilitates your loan process: presenting your 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?

Loan officers work for a particular lending institution (such as a bank) who work with mortgages and other loan programs from their employer alone. While a loan officer may offer quite a range of loans, they will be programs with that particular lender.

A loan officer (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lender. From choosing a loan product to closing, a mortgage banker can guide the borrower through the process. Loan officers will be paid a commission or salary for their work by their employers.