Mortgage Broker or Loan Officer
When you need a mortgage loan, you should know the difference between a mortgage broker and a loan officer. Because a new home is the outcome of the work of both mortgage broker and loan officer, people frequently confuse them. But for your application process, it will help if you recognize how they differ.
A mortgage broker is someone or firm that is an independent agent for the mortgage loan applicant as well as 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 an individual investor. Which lender has the loan programs that is best for you? A mortgage broker will lead you to the right fit. From application to closing, your mortgage broker works with you: submitting your mortgage application to several lenders, and walking you with the chosen lender through to the closing of your loan. At closing, the broker's commission is paid by the borrower.
Loan officers represent a specific lending institution (such as a bank) who work with mortgages and other loan programs from their place of employment alone. There can be a variety of loans types to draw from even though all are programs of that particular lending institution.
A loan officer (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lender. The loan officer can walk you through the application, processing and loan closing. Lending institutions compensate the loan officers with a commission or salary.
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