Mortgage Broker and Loan Officer

When you apply for a mortgage loan, you should know the difference between a mortgage broker and a mortgage banker. It’s easy to confuse the two as both will give the same result: a new home. But as you begin the application process, it can benefit you if you know how they differ.

About Mortgage Brokers

A mortgage broker is a person or firm that works as an independent agent for both the mortgage loan borrower and the lender. 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. You work with a mortgage broker to analyze your financial situation and find the lender who has the right loan program for you. From application to closing, your mortgage broker works with you: submitting your loan application to a number of lenders, and coordinating the process with the lender through to the closing of the loan. The broker receives a commission from the borrower if the loan closes.

Mortgage Bankers

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to promote, and process loans originated by that particular institution alone. They may be able to promote loans to fit many different situations, but all the loans are products from the same lender.

Also known as a “loan representative” or “account executive,” a mortgage banker represents the borrower to the lending institution. From choosing a loan program to closing, a loan officer can walk you through the process. Lenders compensate the mortgage bankers with a salary or commission.

Looking for mortgage advice? We’d be thrilled to talk about our many mortgage solutions! Call us at 661.324.2427.