Loan Officer Vs Mortgage Broker

Loan officers work for a specific lending institution such as a bank who work with mortgages and other lending programs on behalf of their company alone.

Loan officer vs mortgage broker. From application to closing your mortgage broker facilitates the loan process. 3 the advantage of using a broker for you the borrower is brokers can shop around at the. But there s a downside.

They typically make their money through commissions on the loans. Mortgage brokers often are confused with mortgage banks although they are very different. While a mortgage banker reviews and accepts or denies your home loan application directly a mortgage broker acts as a middleman.

They typically make their money through commissions on the loans. However a loan officer is also licensed as a mortgage loan originator mlo which means they may also work for a mortgage broker andrews said. The most important difference between a mortgage broker and a loan officer is that a loan officer works for a lending institution a bank credit union or others to promote and process loans solely originated from that institution.

While a loan officer may offer quite a variety of loans they all are programs from that lender alone. Loan officers are not licensed and do not go through yearly education or certification. They find new clients counsel borrowers on how to choose the best mortgage and fill out loan applications.

Submitting your loan application to a number of lenders and walking you with the chosen lender through to closing. Loan officers can also be mortgage brokers if they also process and broker loans. Both are experts in the laws of their state and in filling out loan.

In other words a mortgage broker is a type of mortgage business while a loan officer is a salesperson paid to give you the information needed to choose a mortgage that fits your needs. Loan officers loan officers find new clients counsel borrowers on how to choose the best mortgage and fill out loan applications. Good mortgage brokers should be able to find borrowers the most competitive rates and also find loans for borrowers with less than perfect credit.