San Diego Mortgage, Broker, Loan Officer

Know what to expect: Mortgage Brokers and Mortgage Bankers

When it's time to locate a mortgage , you may work with a loan officer or you may choose to work with a mortgage broker. As both a mortgage broker and lending officer can help you buy a new home, people can confuse them. However, it is beneficial to recognize the ways they differ so you have clear expectations of them during the mortgage process.

Mortgage Brokers

A mortgage broker is an individual or group that serves as an independent agent for the mortgage loan borrower as well as the lender. A mortgage broker facilitates things between you and your lender, which can be one of the following: a bank, trust company, credit union, mortgage corporation, finance company or even an individual, 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. You use a mortgage broker to look at your financial situation and lead you to the lender who has the right loan program for you. Your broker will offer your mortgage application to one or more lenders, and works with the lender of choice until closing. If the loan closes, the broker's commission is given by the borrower.

What is a Loan Officer?

The most important 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 market and process loans solely originated from the products of that institution. Although a mortgage banker may promote quite a range of loan programs, they all are programs from that particular lender.

A loan officer (also called an "account executive" or "loan representative") represents the borrower to the lending institution. The borrower is helped through the whole process, from finding a loan to closing, by the loan officer. Mortgage bankers are paid a commission or salary for their services by their employers.

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