Mortgage Broker or Loan Officer

Either a mortgage broker or a loan officer may help you when you need a mortgage loan. Since both a mortgage broker and lending officer will help you buy your new home, people frequently confuse the two. But as you enter the application process, it will help if you understand their differences.

Mortgage Brokers

During the mortgage loan process, an individual or firm who is an independent agent for the mortgage loan borrower as well as the lender is a mortgage broker. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. You partner with a mortgage broker to review your financial circumstance and lead you to the lender who has the right mortgage loan for you. You deliver your mortgage loan application to your broker, who submits it to various lenders. Your mortgage broker then helps you work with the lender chosen until the loan closes. Upon closing, the broker's commission comes from the borrower.

About Mortgage Bankers

Mortgage Bankers are representatives of a particular lending institution (such as a bank, credit union, etc.) who process mortgages and other loans originated by their company alone. While a mortgage banker may promote quite a variety of loans, they will be programs from that lender alone.

A mortgage banker (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lender. The loan officer can walk you through the selection, processing and loan closing. Lending institutions pay their mortgage bankers a salary or commission.