Know what to expect: Mortgage Brokers vs. Loan Officers

When you're looking to get a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. Because a new home is the result of the work of both mortgage broker and loan officer, it's easy to confuse the two. However, knowing how they are different is important to your mortgage process.

About Mortgage Brokers

A mortgage broker is an individual or company that is an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. Which lender offers the loan programs that is right for you? A mortgage broker will help you find the right one. Your broker will offer your mortgage application to one or more lenders, and works with the lender of choice until closing. The borrower gives a commission to the broker upon closing.

What is a Mortgage Banker?

Mortgage Bankers are representatives of a particular lending institution (such as a bank, credit union, etc.) who work with mortgages and other loan programs from their employer alone. There can be a variety of loans types to choose from although all are products of that specific lender.

Your mortgage banker represents you to the bank or other lending institution. A mortgage banker can help you through the application, processing and loan closing. Lending institutions compensate their loan officers with a commission or salary.