Either a mortgage broker or a loan officer can work with you when you work on your application for a mortgage loan. As a new home is the result of the work of both mortgage broker and loan officer, it's understandable to confuse them. But as you enter the application process, it will benefit you if you recognize their differences.
As mortgage broker, we are an independent contractor with many lender relationships. We will stand as a facilitator between you and the lending institution. We evaluate your financial situation and many other aspects of the transaction to determine which lender is the right fit for your loan needs. As your broker, we will submit your mortgage loan application to various lenders, and works with the lender chosen until the loan closes. That lender typically pays a fee to the brokerage company upon closing, and individuals are employees of the brokerage company.
The biggest difference between a mortgage broker and a loan officer is that a loan officer works for a lending institution (a bank, credit union, or others) to market and process loans solely from the products of that institution. They may be able to market loans to fit a variety of situations, but all the loans are programs from the same lender.
A loan officer will represent you to the bank. From finding a loan program to closing, a loan officer can help the borrower through the process. Either a salary or commission is given to loan officers by their employers.
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