Either a mortgage broker or a loan officer can assist you when you apply for a mortgage loan. It's common to confuse them as both will glean the same result: a new home. But as you begin the application process, it will help if you recognize the ways they differ.
A mortgage broker is a person or company that serves as an independent agent for both the mortgage loan borrower and the lender. Acting as a facilitator between you and your lender, your mortgage broker can match you with a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. You partner with a mortgage broker to examine your financial circumstance and find the lender who has the best mortgage loan for you. You give your mortgage application to your broker, who submits it to various lenders. Your mortgage broker then assists your work with the lender chosen until closing. At closing, the broker's commission is paid by either the lender or borrower, your choice.
The biggest difference between a mortgage broker and a loan officer is that the latter works for a lending institution (a bank, credit union, or others) to process loans only originated from that institution. They may have the ability to offer loans to fit many different situations, but all the loans will be programs of the same lender.
A loan officer (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lender. A loan officer will guide the borrower through the application, processing and closing of the loan. Lenders compensate their loan officers with a commission or salary.
Have questions about the loan process? Call Vijay at 309-750-1082. We answer questions about the loan process every day.