Mortgage Broker or Loan Officer

When you need a mortgage loan, you should know the difference between a mortgage broker and a loan officer. Since a new home is the outcome of the work of both mortgage broker and mortgage banker, people can confuse them. Yet understanding the ways they differ is helpful to your mortgage loan process.

Mortgage Brokers

During the mortgage loan process, an individual or group who is an independent agent for both mortgage loan applicant and lender is a mortgage broker. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual investor. A mortgage broker can look at your finances to determine which lender is the best fit for you. Your broker will present your mortgage loan application to a handful of lenders, and works with the chosen lender until the loan closes. At closing, the broker's commission is paid by the borrower.

What is a Loan Officer?

The biggest difference between a mortgage broker and a loan officer is that the latter works for a lending institution (a bank, credit union, or others) to process loans solely from the products of that institution. They may be able to market loans to fit a variety of situations, but all the loans will be programs from the same lender.

A loan officer (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lending institution. A mortgage banker will guide the borrower through the application, processing and closing of the loan. Loan officers may be given a commission or salary for their work by their employers.

Shopping for a mortgage? We will be glad to help! Call us at (858) 485-5800. Ready to get started? Apply Here.