Mortgage Broker vs. Loan Officer

Either a mortgage broker or a loan officer may assist you when you need a mortgage . Since a new home is the result of the work of both mortgage broker and loan officer, it's understandable to confuse the two. But as you enter the application process, it can benefit you if you understand how they are different.

Mortgage Brokers

A mortgage broker is an individual or company that is an independent agent for both the mortgage loan applicant and 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. You work with a mortgage broker to analyze your financial situation and find the lender who has the best mortgage loan for you. Your broker will offer your mortgage loan application to several lenders, and works with the chosen lender until the loan closes. The broker is given a commission from the borrower if the loan closes.

About Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process mortgage loans originated by that specific institution alone. They may be able to market loans to fit many different situations, but all the loans will be products of the same lender.

Your mortgage banker represents you to the bank or other lending institution. The borrower is walked through the entire process, from selecting a loan to closing, by the loan officer. Either a salary or commission is given to loan officers by their employers.

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