When it comes to locating a mortgage loan, you should know the difference between a loan officer and a mortgage broker.

What is a Mortgage Broker?

A mortgage broker (either a company or an individual) is an independent agent for both the mortgage loan borrower and the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. You use a mortgage broker to consider your financial circumstance and lead you to the lender who has the right mortgage loan for you. From application to closing, your mortgage broker facilitates the loan process: submitting your loan application to several lenders, and walking you with the chosen lender through to the closing of the loan. If the loan closes, the broker's commission is given by the borrower.

Loan Officers

Lending Institutions (banks, finance companies, and others) employ mortgage bankers to market, and process mortgage loans originated by that particular institution alone. While a mortgage banker may market quite a range of loans, they all are products from that lender alone.

A loan officer (also known as an "account executive" or "loan representative") represents the borrower to the lender. A mortgage banker will guide you through the application, processing and closing of the loan. Either a salary or commission is paid to loan officers by their employers.


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Mortgage Broker vs. Loan Officer: What's the Difference?