Mortgage Broker Vs Loan Officer

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.

Mortgage broker vs loan officer. 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 officers can also be mortgage brokers if they also process and broker loans. Good mortgage brokers should be able to find borrowers the most competitive rates and also find loans for borrowers with less than perfect credit.

Lenders are the ones who front the money to fund your loan. While a mortgage banker reviews and accepts or denies your home loan application directly a mortgage broker acts as a middleman. Mortgage brokers are individuals who work independently to help home.

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. 3 the advantage of using a broker for you the borrower is brokers can shop around at the. You can avoid some of the fees you would have to pay a mortgage broker.

A loan officer also called an account executive or loan representative represents the borrower to the lending institution. Mortgage brokers on the other hand may not be interested in finding you the best deal choosing to work with a particular mortgage lender because they pay a higher commission. What is a loan officer.

As licensed professionals in the real estate industry both help their. But there s a downside. Also known as a loan representative or account executive a loan officer acts of behalf of the borrower to the lending institution.

The borrower gives a commission to the broker if the loan closes. Mortgage brokers and loan officers have basically the same goals which are making loans to people looking to buy property. Loan officers are not licensed and do not go through yearly education or certification.