Know the difference: Mortgage Brokers and Loan Officers

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Either a mortgage broker or a loan officer may help you when you work on your application for a mortgage loan. It's easy to confuse the two as both will reap the same outcome: a new home. But as you begin your application process, it will help if you understand they ways they differ.

About Mortgage Brokers

A mortgage broker (either a company or an individual) is an independent agent for both the mortgage loan applicant and the lender. Your mortgage broker will stand as coordinator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. You partner with a mortgage broker to review your financial circumstance and lead you to the lender who has the best loan program for you. From application to closing, your mortgage broker facilitates the loan process: submitting your application to a number of lenders, and coordinating the process with the lender through to the closing of the loan. At closing, the broker's commission is given by the borrower.

What is a Loan Officer?

Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process loans solely originated by that specific institution. While a loan officer may market quite a variety of loans, they all are programs of that particular lender.

Also known as a "loan representative" or "account executive," a loan officer represents the borrower to the lender. The borrower is walked through the whole process, from choosing a loan to closing, by the loan officer. Loan officers will be paid a commission or salary for their services by their employers.

Looking for a Mortgage? Call 919-355-1034.

Looking for a Mortgage? Call 919-355-1034.