Schaumburg Mortgage, Broker, Loan Officer
Mortgage Broker vs. Loan Officer
When it comes to applying for a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. Since a new home is the result of the work of both mortgage broker and mortgage banker, it's easy to confuse the two. However, it will be important to know the ways they differ so you know what to expect from them as you enter your mortgage process.
About Mortgage Brokers
A mortgage broker (either a company or an individual) is an independent agent for the mortgage loan borrower as well as the lender. A mortgage broker facilitates things for you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a bank, trust company, credit union, mortgage corporation, finance company or even a private investor. A mortgage broker will look at your financial situation to find out which lender is the right fit for you. From application to closing, your mortgage broker facilitates your loan process: submitting your loan application to several lenders, and coordinating the process with the lender through to the closing of your loan. The borrower submits a commission to the broker at closing.
The main difference between a mortgage broker and a mortgage banker is that the latter works for a lending institution (a bank, credit union, or others) to promote and process loans only originated from that institution. They may have the ability to market loans to fit a variety of situations, but all the loans will be products of the same lender.
Also called a "loan representative" or "account executive," a loan officer represents the borrower to the lending institution. From choosing a loan product to closing, a mortgage banker will walk the borrower through the process. Mortgage bankers are compensated with a commission or salary for their work by their employers.
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