Know what to expect: Mortgage Brokers and Loan Officers

Either a mortgage broker or a loan officer may work with you when you're looking to get a mortgage . It's common to confuse them because both will reap the same result: a new home. Yet it will be important to understand the ways they differ so you know what to expect from them as you enter your mortgage process.

What is a Mortgage Broker?

A mortgage broker (either a company or an individual) is an independent agent for both the mortgage loan borrower and the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. A mortgage broker will look at your numbers to find out which lender is the right fit for you. Your broker will submit your mortgage loan application to several lenders, and works with the lender of choice until the loan closes. The borrower pays a commission to the broker at closing.

About Mortgage Bankers

Loan officers are representatives of a particular lending institution (such as a bank, credit union, etc.) who work with mortgages and other loans from their employer alone. There can be an assortment of loans types to draw from even though all are products of that particular lending institution.

Your mortgage banker represents you to the bank or other lending institution. From finding a loan program to closing, a loan officer can walk you through the process. Mortgage bankers are paid a commission or salary for their services by their employers.