Mortgage Broker vs. Loan Officer

When it's time to get a mortgage loan, you need to know the difference between a mortgage broker and a loan officer. As a new home is the result of the work of both mortgage broker and loan officer, people often confuse the two job types. However, it will be important to know how they differ so you know what to expect from them during the mortgage process.

Mortgage Brokers

A mortgage broker is a person or company that is an independent agent for both the mortgage loan applicant and 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 bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Which lender has the loan programs that fits your financial situation? A mortgage broker will guide you to the right fit. Your broker will present your mortgage application to several lenders, and works with the lender of choice until closing. The broker is given a commission from the borrower upon closing.

What is a Mortgage Banker?

Mortgage Bankers work for a particular lending institution (such as a bank) who process mortgages and other lending programs on behalf of their place of employment alone. There may be a wide variety of loans types to choose from although all are programs of that specific lender.

A loan officer (also known as an "account executive" or "loan representative") acts on behalf of the borrower to the lender. The borrower is walked through the entire process, from loan selection to closing, by the loan officer. Loan officers are compensated with a commission or salary for their services by their employers.

Are you looking for a new mortgage loan? We'd be thrilled to discuss our many mortgage solutions! Call us at 305-967-7200. Ready to begin? Apply Here.