Know the difference: Mortgage Brokers vs. Loan Officers

When you apply for a mortgage , you need to know the difference between a mortgage broker and a loan officer. It's easy to confuse them since both will produce the same result: a new home. Yet it is useful to understand the difference between the two jobs so you know what to expect from them as you enter the mortgage application process.

What is a Mortgage Broker?

A mortgage broker (either a group or an individual) is an independent agent for the mortgage loan borrower as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. You use a mortgage broker to look at your financial situation and find the lender who has the best loan for you. You deliver your mortgage loan application to your broker, who presents it to a number of lenders. Your mortgage broker then assists your work with the lender chosen until the loan closes. Upon closing, the broker's commission is given by the borrower.

About Loan Officers

The main difference between a mortgage broker and a mortgage banker is that a loan officer works for a lending institution (a bank, credit union, or others) to process loans solely originated from the products of that institution. There may be a wide range of loans types to draw from, but all are products of that specific lending institution.

Also called a "loan representative" or "account executive," a loan officer represents the borrower to the lender. From finding a loan product to closing, a loan officer can guide the borrower through the process. Either a salary or commission is paid to mortgage brokers by their employers.

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Marc Moser / NMLS# 232625

Licensed in Florida

2451 N. McMullen Booth Rd. Ste. 306
Clearwater, FL 33759