Mortgage Broker or Loan Officer
Either a mortgage broker or a mortgage banker may work with you when it's time to apply for a mortgage . Since a new home is the result of the work of both mortgage broker and loan officer, it's easy to confuse them. But for your application process, it can benefit you if you know they ways they differ.
About Mortgage Brokers
During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. A mortgage broker coordinates 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, private 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 an individual investor. You partner with a mortgage broker to analyze your financial situation and find the lender who has the right mortgage loan for you. Your broker will present your mortgage application to one or more lenders, and works with the chosen lender until closing. The borrower gives a commission to the broker upon closing.
Mortgage Bankers work for a particular lending institution (such as a bank, credit union, etc.) who offer and process mortgages and other loan programs for their place of employment alone. They may be able to promote loans to fit a variety of situations, but all the loans are products from the same lender.
Also known as a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lender. From selecting a loan program to closing, a loan officer can walk you through the process. Loan officers will be compensated with a commission or salary for their services by their employers.