When it’s time to locate a mortgage, you need to know the difference between a loan officer and a mortgage broker. People usually confuse them because both will produce the same outcome: a new home. Yet it is valuable to understand the difference between them so you know what to expect from them as you enter the mortgage process.
A mortgage broker is an individual or firm that is an independent agent for both the mortgage loan applicant and the lender. A mortgage broker facilitates things between you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even a 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 a private investor. A mortgage broker will consider your numbers to determine which lender is the best t for you. Your broker will present your mortgage application to various lenders, and works with the lender of choice until closing. Upon closing, the broker’s commission is paid by the borrower.
Loan officers represent a specific lending institution (such as a bank) who process mortgages and other loans originated by their place of employment alone. They may be able to market loans to t a variety of situations, but all the loans will be products of the same lender.
Your mortgage banker will represent you to the bank or other lending institution. A loan officer can guide the borrower through the application, processing and closing of the loan. Either a salary or commission is given to loan officers by their employers.
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