Mortgage Broker vs. Loan Officer
When most people make the decision to refinance or buy a home they walk in to their local bank and talk to a bank loan officer and/or call a mortgage broker referred by a friend or real estate agent. When you're looking to get a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. People often confuse the two job types even though both can help you obtain your loan. However, it is important to understand the difference between the two types of jobs so you know what to expect from them during the mortgage application process.
A mortgage broker is an individual or firm that acts as an independent agent for both the borrower and the lender of a mortgage loan. Heritage Mortgage is a mortgage brokerage company. We work with multiple lending institutions and are the middle man between you and the lending institution, which is usually a bank but can be a trust company, credit union, mortgage corporation, finance company or even an individual private investor. A mortgage broker will analyze your financial situation to determine which lender has the best programs at the best rates to fit for your loan needs. We do all the paperwork, collect the supporting data and submit your mortgage application to one (or more lenders). I receive a commission from the lending institution when the loan closes. If there are additional fees to the borrower, they will be known to you in writing before the loan closes.
A loan officer is a representative of a lending institution, such as a bank, who works to sell and process mortgages and other loans originated by their employer. They often have a wide variety of loans types to draw from, but all originate from that specific lender. Also known as a loan representative or account executive, loan officers represent the borrower to the lending institution and will guide him or her through the selection, processing and closing of mortgage loan. Loan officers can be paid a commission or salary for their services and may or may not charge the borrower additional fees.