Know what to expect: Mortgage Brokers and Loan Officers
When you apply for a mortgage , you need to know the difference between a loan officer and a mortgage broker. It's easy to confuse these because both will give the same outcome: a new home. But as you enter your application process, it can help if you know how they differ.
A mortgage broker (either a firm or an individual) is an independent agent for both the mortgage loan applicant and the lender. A mortgage broker facilitates things between you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even an individual 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 work with a mortgage broker to look at your financial situation and find the lender who has the best loan program for you. Your broker will offer your mortgage loan application to one or more lenders, and works with the lender of choice until closing. Upon closing, the broker's commission is paid by the borrower.
About Loan Officers
The biggest difference between a mortgage broker and a loan officer is that a mortgage banker is employed by a lending institution (a bank, credit union, or others) to process loans solely from the products of that institution. There can be a wide range of loans types to draw from even though all are products of that particular lending institution.
Also called a "loan representative" or "account executive," a mortgage banker acts of behalf of the borrower to the lending institution. The loan officer will help you through the selection, processing and loan closing. Mortgage bankers are given a commission or salary for their work by their employers.
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