Know what to expect: Mortgage Brokers and Loan Officers
When you apply for a mortgage , you should know the difference between a mortgage banker and a mortgage broker. Since both a mortgage broker and lending officer can help you buy your new home, it's easy to confuse them. Yet recognizing the ways they differ will be advantageous to the mortgage process.
During the mortgage loan process, an individual or group who is an independent agent for the mortgage loan borrower as well as the lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Which lender offers the mortgage loans that fits your financial situation? A mortgage broker will lead you to the best one. You deliver your loan application to your broker, who submits it to various lenders. Your mortgage broker then assists your work with the lender chosen until closing. The borrower pays a commission to the broker upon closing.
Lending Institutions (banks, finance companies, and others) employ loan officers to market, and process mortgage loans from that specific institution alone. They may be able to promote loans to fit a variety of situations, but all the loans are programs of the same lender.
A mortgage banker represents you to the bank or other lending institution. A loan officer can help you through the application, processing and closing of the loan. Either a salary or commission is given to mortgage brokers by their employers.
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