Mortgage Broker or Loan Officer

When you apply for a mortgage , you need to know the difference between a mortgage broker and a loan officer. Since both produce the same result (a new home), people can confuse the two. However, recognizing how they are different will be helpful to your mortgage process.

About Mortgage Brokers

A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan applicant as well as the lender. A mortgage broker coordinates 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. You partner with a mortgage broker to examine your financial situation and lead you to the lender who has the right loan program for you. Your broker will present your mortgage loan application to various lenders, and works with the chosen lender until closing. The borrower submits a commission to the broker upon closing.

Loan Officers

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to market, and process mortgage loans solely on behalf of that particular institution. They may have the ability to market loans to fit many different situations, but all the loans are products of the same lender.

A loan officer represents you to the bank or other lending institution. From selecting a loan program to closing, a loan officer will guide the borrower through the process. Either a salary or commission is given to mortgage brokers by their employers.

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