Mortgage Brokers vs Loan Officers
When you're looking to get a mortgage , you need to know the difference between a mortgage broker and a mortgage banker. Since a new home is the result of the work of both mortgage broker and loan officer, it's understandable to confuse the two. However, understanding how they are different will be important to the mortgage loan process.
What Is A Mortgage Broker?
A mortgage broker (either a firm or an individual) is an independent agent for the mortgage loan borrower as well as the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Which lender has the loans that fits your needs? A mortgage broker will guide you to the best fit. From application to closing, your mortgage broker facilitates your loan process: offering your application to several lenders, and walking you with the chosen lender through to closing. The broker gets a commission from the borrower at closing.
What Is A Loan Officer?
Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process mortgage loans originated by that particular institution alone. Although a loan officer may promote quite a range of loans, they are all products of that one lender.
A mortgage banker (also called an "account executive" or "loan representative") represents the borrower to the lender. The loan officer can guide you through the application, processing and loan closing. Either a salary or commission is given to mortgage brokers by their employers.
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