Vienna Mortgage, Broker, Loan Officer

Know the difference: Mortgage Brokers vs. Mortgage Bankers

Either a mortgage broker or a loan officer can assist you when you work on your application for a mortgage . People usually confuse them because both will yield the same result: a new home. But as you enter your application process, it will benefit you if you recognize they ways they differ.

What is a Mortgage Broker?

A mortgage broker is an individual or firm that serves as an independent agent for the mortgage loan applicant as well as the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which may be a bank, trust company, credit union, mortgage corporation, finance company or even an individual investor. Which lender has the mortgage loans that is right for you? A mortgage broker will help you find the best fit. You deliver your application to your broker, who offers it to various lenders. Your mortgage broker then helps you work with the lender chosen until the closing of the loan. Upon closing, the broker's commission comes from the borrower.

What is a Mortgage Banker?

Loan officers are representatives of a specific lending institution (such as a bank) who work with mortgages and other loan programs on behalf of their place of employment alone. Although a mortgage banker may promote quite a range of loan programs, they all are products from that specific lender.

Also called a "loan representative" or "account executive," a mortgage banker acts of behalf of the borrower to the lender. The borrower is walked through the entire process, from loan selection to closing, by the loan officer. Mortgage bankers are compensated with a commission or salary for their work by their employers.

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