Know what to expect: Mortgage Brokers vs. Loan Officers

When you work on your application for a mortgage , you need to know the difference between a mortgage broker and a mortgage banker. It's common to confuse the two job types because both will yield the same outcome: a new home. However, it will be important to understand the ways they differ so you know what to expect from them during your mortgage application process.

About Mortgage Brokers

A mortgage broker is a person or group that acts as an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. A mortgage broker will consider your finances to find out which lender is the right fit for your loan needs. From application to closing, your mortgage broker facilitates the loan process: offering your mortgage application to a number of lenders, and coordinating the process with the lender through to the closing of the loan. The broker is given a commission from the borrower if the loan closes.

What is a Mortgage Banker?

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to offer, and process loans on behalf of that particular institution alone. There can be a wide variety of loans types to draw from, but all are products of that specific lending institution.

Your mortgage banker represents you to the bank or other lending institution. From selecting a loan to closing, a mortgage banker will help you through the process. Mortgage bankers can be given a commission or salary for their work by their employers.