Mortgage Broker vs. Loan Officer

When you're looking to get a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. People often confuse the two job types even though both will glean the same results: a new home. However, it is important to understand the difference between the two types of jobs so you know what to expect from them during the mortgage application process.

A mortgage broker is an individual or firm that acts as an independent agent for both the borrower and the lender of a mortgage loan.

Mortgage brokers are the middle man between you and wholesale lending institutions. A mortgage broker will analyze your financial situation to determine which lender is the best fit for your loan needs. He or she will submit your mortgage application to one or more lenders, and works with the chosen lender until the loan closes. A mortgage broker has the ability to select from hundreds of wholesale lenders to determine which ones are best suited for the specific needs of each client. A mortgage broker doesn't make a penny unless a mortgage loan is funded to the satisfaction of the client. This relationship usually translates to a high level of customer satisfaction for the clients of a mortgage broker. Since a mortgage broker has access to so many different wholesale lenders, they can shop to find the lenders that offer the lowest rates AND the best customer service. This usually results in a mortgage broker being able to offer a lower interest rate than a bank that has a single group of mortgage programs.

A loan officer is a representative of a lending institution, such as a bank, who works to sell and process mortgages and other loans originated by their employer. They often have a variety of loans types to draw from, but are limited to only the loan programs offered by their employer. The loan officer is usually paid on an hourly or salary basis.

Click the APPLY ONLINE button to get approved for your mortgage loan, and we'll discuss all of your options for a mortgage loan with a low interest rate!