Know the difference: Mortgage Brokers vs. Loan Officers
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When you work on your application for a mortgage loan, you should know the difference between a mortgage broker and a loan officer. People can confuse them as both will give the same result: a new home. Yet it will be valuable to know the difference between the two jobs so you know what to expect from them as you enter your mortgage application process.
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 can be a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. Which lender offers the mortgage loan that fits your needs? A mortgage broker will guide you to the best fit. From application to closing, your mortgage broker works with you: submitting your application to several lenders, and coordinating the process with the lender through to the closing of the loan. Upon closing, the broker's commission is paid by the borrower.
What is a Loan Officer?
Lending Institutions (banks, finance companies, and others) employ loan officers to offer, and process loans solely on behalf of that particular institution. While a loan officer may market quite a range of loans, they are all products with that lender alone.
A loan officer (also called an "account executive" or "loan representative") represents the borrower to the lender.
A loan officer will walk you through the selection, processing and closing of the loan. Loan officers may be given a commission or salary for their services by their employers.
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