When you need a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. It's understandable to confuse the two as both will reap the same outcome: a new home. However, knowing how they differ is valuable to your mortgage loan process.
What is a Mortgage Broker?
A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as facilitate between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. A mortgage broker will look at your finances to determine which lender is the best fit for your loan needs. You deliver your application to your broker, who submits it to a number of lenders. Your mortgage broker then guides your work with the lender chosen until the loan closes. The broker receives a commission from the borrower when the loan closes.
About Loan Officers
Loan officers represent a particular lending institution (such as a bank) who work with mortgages and other loan programs on behalf of their company alone. While a loan officer may promote quite a variety of loan programs, they all are programs of that lender alone.
A loan officer will represent you to the bank or other lending institution. From finding a loan to closing, a loan officer will help you through the process. Loan officers will be given a commission or salary for their services by their employers.
Need a Mortgage Loan? Call 954-605-2450.