Mortgage Broker Vs Loan Officer

Lenders are the ones who front the money to fund your loan.

Mortgage broker vs loan officer. As licensed professionals in the real estate industry both help their. Mortgage brokers are individuals who work independently to help home. 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.

If a loan is approved the mortgage broker collects an origination fee from the lender as compensation. 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. Loan officers can also be mortgage brokers if they also process and broker loans.

While a mortgage banker reviews and accepts or denies your home loan application directly a mortgage broker acts as a middleman. What is a loan officer. Loan officers are sometimes called mortgage consultants mortgage loan originators home loan consultants and mortgage planners.

But there s a downside. The loan officer gets paid a commission for closing the loan. The borrower gives a commission to the broker if the loan closes.

Good mortgage brokers should be able to find borrowers the most competitive rates and also find loans for borrowers with less than perfect credit. Mortgage brokers and loan officers have basically the same goals which are making loans to people looking to buy property. 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.

They typically make their money through commissions on the loans. The more expensive the mortgage the more the broker gets paid. 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.