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 loan. 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 the lending institution, which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual private investor. 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 in order to sell it, and works with the chosen lender until the loan closes. He or she receives a commission if the loan closes.

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.  Loan officers can be paid a commission or salary for their services, but they ultimately are an employee of the lender they work for and are not an independent agent.

There are pros and cons to working with either type lender, but being brokers, we like to think we offer more choices, and a more unbiased opinion. Whichever way you decide to go, be sure to select an experienced professional to help you. If you'd like a list of questions to ask your mortgage broker or loan officer, contact us. We have 36 questions to help you determine who is the best chace for you.