Newport Beach Mortgage, Broker, Loan Officer

Know what to expect: Mortgage Brokers and Mortgage Bankers

When you work on your application for a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. As a new home is the outcome of the work of both mortgage broker and mortgage banker, people frequently confuse them. Yet it is valuable to know the ways they differ so you have clear expectations of them as you enter your mortgage process.

About Mortgage Brokers

During the mortgage loan process, an individual or firm who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. Your mortgage broker will stand as coordinator between you and the lending institution; which may be a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. You work with a mortgage broker to look at your financial circumstance and lead you to the lender who has the right loan for you. You deliver your application to your broker, who presents it to a number of lenders. Your mortgage broker then guides your work with the lender of choice until the closing of the loan. The broker is given a commission from the borrower at closing.

Loan Officers

The biggest difference between a mortgage broker and a mortgage banker is that a loan officer works for a lending institution (a bank, credit union, or others) to process loans only originated from the products of that institution. They may have the ability to promote loans to fit a variety of situations, but all the loans are products from the same lender.

Also known as a "loan representative" or "account executive," a mortgage banker represents the borrower to the lending institution. The borrower is walked through the entire process, from loan selection to closing, by the mortgage banker. Mortgage bankers may be given a commission or salary for their services by their employers.

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