Mortgage Broker or Loan Officer

Either a mortgage broker or a loan officer can assist you when you apply for a mortgage loan. People frequently confuse these as both will glean the same outcome: a new home. Yet recognizing how they differ will be advantageous to your mortgage loan process.

What is a Mortgage Broker?

A mortgage broker is a person or group that serves as an independent agent for the mortgage loan borrower 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 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 a private investor. You partner with a mortgage broker to look at your financial situation and lead you to the lender who has the best loan program for you. You deliver your application to your broker, who presents it to one or more lenders. Your mortgage broker then assists your work with the lender of choice until closing. At closing, the broker's commission comes from the borrower.

About Loan Officers

Loan officers work for a specific lending institution (such as a bank) who market and process mortgages and other lending programs originated by their company alone. While a loan officer may offer quite a variety of loan programs, they will be programs with that particular lender.

Your loan officer will represent you to the bank or other lending institution. The loan officer will guide you through the selection, processing and closing of the loan. Either a salary or commission is paid to loan officers by their employers.