Loan Officer Vs Mortgage Broker

3 the advantage of using a broker for you the borrower is brokers can shop around at the.

Loan officer vs mortgage broker. Mortgage brokers and loan officers have basically the same goals which are making loans to people looking to buy property. Loan officers can also be mortgage brokers if they also process and broker loans. 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.

They find new clients counsel borrowers on how to choose the best mortgage and fill out loan applications. 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. The borrower gives a commission to the broker if the loan closes.

Mortgage brokers often are confused with mortgage banks although they are very different. 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. From application to closing your mortgage broker facilitates the loan process.

If a loan is approved the mortgage broker collects an origination fee from the lender as compensation. Loan officers are not licensed and do not go through yearly education or certification. Loan officers are typically employed by lenders or mortgage brokers.

Mortgage brokers are individuals who work independently to help home. While a loan officer may offer quite a variety of loans they all are programs from that lender alone. Both are experts in the laws of their state and in filling out loan.

They typically make their money through commissions on the loans. Loan officers loan officers find new clients counsel borrowers on how to choose the best mortgage and fill out loan applications. But there s a downside.