Mortgage broker vs loan officer

Refinance Online Today! How is a mortgage broker different from a bank? Should I get my loan through a mortgage broker or bank? What makes a good loan broker?

They find new clients, counsel borrowers on how to choose the best mortgage , and fill out loan applications.

Loan officers are typically employed by lenders or mortgage brokers. They typically make their money through commissions on the loans. 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. 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.

While a loan officer may offer quite a variety of loans , they all are programs from that lender alone. From application to closing, your mortgage broker facilitates the loan process: submitting your loan application to a number of lenders, and walking you with the chosen lender through to closing. The borrower gives a commission to the broker if the loan closes.

But there’s a downside: The more expensive the mortgage , the more the broker gets paid. They usually earn commissions for originating loans , and the prices they charge may not be negotiable. They can only sell products offered by their employer. During the mortgage loan process, an individual or company who is an independent agent for the mortgage loan borrower as well as the lender is a mortgage broker.

The advantage of using a broker for you, the borrower, is brokers can shop around at the. Call Us to Start Today! A good mortgage broker can find a lender for just about any type of credit. Find Out How Much You Can Afford. You will find a wide array of different types of lenders on Zillow.

Lending Institutions (banks, finance companies, and others) employ loan officers to promote, and process loans solely originated by that specific institution. They may be able to offer loans to fit a variety of. Once the broker helps you find a lender, he or she will basically fade from the picture. Your new point of contact would be the loan officer , who will steer your file through the rest of the process.

The mortgage broker makes a match between borrower and lender, and then hands you off to the MLO for further processing. These professionals are responsible for gathering client credit. You can avoid some of the fees you would have to pay a mortgage broker.

The loan officer gets paid a commission for closing the loan. Mortgage brokers, on the other han may not be interested in finding you the best deal, choosing to work with a particular mortgage lender because they pay a higher commission. Direct Lender: An Overview. The mortgage industry is full of individuals and companies that help people get access to financing for one of the biggest investments in their lives.

As a broker , the lender pays our fees. Although a loan officer may market quite. A mortgage broker will lead you to the right one. Your broker will present your loan application to various lenders, and works with the chosen lender until closing.

The broker receives a commission from the borrower upon closing. People can confuse the two because both will reap the same result: a new home. But as you enter your application process, it will benefit you if you know their differences. In a nutshell, real estate agents focus on the buying and selling of property while loan officers deal with the financial side of obtaining a mortgage.

But let’s take a closer look. A real estate agent can help you find the perfect home and navigate the potentially confusing waters of the homebuying process. The mortgage loan officer (MLO) actually works for the bank, lender, or financial institution that is funding the loan.

Department of Labor: “Most loan officers are employed by commercial banks, credit unions, mortgage companies, and related financial institutions.