Mortgage Broker and Loan Officer

When you work on your application for a mortgage loan, you need to know the difference between a loan officer and a mortgage broker. People sometimes confuse the two job types because both will reap the same outcome: a new home. But for your application process, it will help if you know how they differ.

Mortgage Brokers

During the mortgage loan process, an individual or company 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 coordinator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. You work with a mortgage broker to analyze your financial circumstance and lead you to the lender who has the best mortgage loan for you. From application to closing, your mortgage broker works with you: offering your application to a number of lenders, and coordinating the process with the lender through to the closing of your loan. The borrower submits a commission to the broker upon closing.

About Loan Officers

Loan officers are representatives of a particular lending institution (such as a bank) who process mortgages and other lending programs originated by their employer alone. There may be a wide range of loans types to choose from, but all are products of that particular lending institution.

Your loan officer will represent you to the bank or other lending institution. From selecting a loan to closing, a loan officer can guide you through the process. Either a salary or commission is paid to loan officers by their employers.