Mortgage Broker vs. Loan Officer
When you're looking to get a mortgage , you should know the difference between a mortgage banker and a mortgage broker. Because a new home is the outcome of the work of both mortgage broker and mortgage banker, people often confuse the two job types. But as you begin your application process, it will help if you recognize how they are different.
During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. A mortgage broker coordinates things for 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, private 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 an individual investor. A mortgage broker can look at your numbers to determine which lender is the best fit for you. From application to closing, your mortgage broker facilitates the loan process: offering your mortgage application to a number of lenders, and coordinating the process with the lender through to the closing of your loan. Upon closing, the broker's commission is paid by the borrower.
What is a Loan Officer?
Mortgage Bankers work for a particular lending institution (such as a bank, credit union, etc.) who promote and process mortgages and other lending programs from their employer alone. They may be able to market loans to fit a variety of situations, but all the loans are products of the same lender.
Your loan officer will represent you to the bank or other lending institution. From choosing a loan product to closing, a loan officer will help a borrower through the process. Either a salary or commission is paid to loan officers by their employers.
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