When it’s time to locate a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. Because both glean the same result (a new home), people frequently confuse the two. However, recognizing the differences between them will be valuable to the mortgage loan process.

What is a Mortgage Broker?

During the mortgage loan process, an individual or group who is an independent agent for the mortgage loan applicant, as well as the lender, is a mortgage broker. Your mortgage broker will stand as the coordinator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. Which lender offers the loan program that fits your needs? A mortgage broker will lead you to the best one. You give your application to your broker, who offers it to various lenders. Your mortgage broker then helps you work with the lender of choice until closing. The borrower submits a commission to the broker upon closing.

Loan Officers

Loan officers represent a specific lending institution (such as a bank) who promote and process mortgages and other loan products for their place of employment alone. They may have the ability to offer loans to fit many different situations, but all the loans are products of the same lender.

Your loan officer will represent you to the bank or other lending institution. The borrower is walked through the whole process, from loan selection to closing, by the loan officer. Either a salary or commission is paid to loan officers by their employers.