Newport Beach Mortgage, Broker, Loan Officer

Know what to expect: Mortgage Brokers and Mortgage Bankers

When you apply for a mortgage , you should know the difference between a mortgage broker and a loan officer. Because both give the same result (a new home), people sometimes confuse them. But as you enter your application process, it can benefit you if you recognize they ways they differ.

Mortgage Brokers

A mortgage broker (either a firm or an individual) is an independent agent for the mortgage loan borrower as well as the lender. Your mortgage broker will stand as facilitator 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. Which lender has the loans that fits your needs? A mortgage broker will help you find the best fit. Your broker will offer your mortgage application to various lenders, and works with the chosen lender until the loan closes. At closing, the broker's commission is given by the borrower.

About Loan Officers

The biggest difference between a mortgage broker and a mortgage banker is that the latter works on behalf of a lending institution (a bank, credit union, or others) to process loans solely originated from that institution. There may be an assortment of loans types to choose from, but all are products of that specific lending institution.

A loan officer represents you to the bank or other lending institution. The borrower is helped through the entire process, from loan selection to closing, by the mortgage banker. Either a salary or commission is paid to loan officers by their employers.

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