Know the difference: Mortgage Brokers vs. Loan Officers
When it comes to applying for a mortgage , you need to know the difference between a mortgage broker and a mortgage banker. Since both give the same result (a new home), it's understandable to confuse them. But as you enter your application process, it can help if you know they ways they differ.
About Mortgage Brokers
A mortgage broker (either a group or an individual) is an independent agent for the mortgage loan applicant as well as the lender. A mortgage broker coordinates things between 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 credit union, bank, trust company, finance company, mortgage corporation or even a private investor. Which lender has the loan programs that fits your financial situation? A mortgage broker will lead you to the best fit. From application to closing, your mortgage broker facilitates your loan process: submitting your loan application to a number of lenders, and coordinating the process with the lender through to the closing of the loan. The borrower gives a commission to the broker at closing.
About Loan Officers
The most important difference between a mortgage broker and a loan officer is that the latter works on behalf of a lending institution (a bank, credit union, or others) to process loans solely from the products of that institution. There may be a wide variety of loans types to draw from although all are programs of that particular lending institution.
A loan officer will represent you to the bank or other lending institution. From selecting a loan to closing, a mortgage banker can help you through the process. Loan officers will be paid a commission or salary for their services by their employers.
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