They can also be referred to as a loan officer. When you apply for a home loan, you can work with a loan officer, or you can choose to work with a mortgage broker. Since a new home is the result of the work of both the mortgage broker and the loan officer, people sometimes confuse the two. However, recognizing the differences between them is advantageous for your home loan process.
Loan officers are often employed by lenders or mortgage brokers. They find new clients, advise borrowers on how to choose the best mortgage, and complete loan applications. They usually earn their money through loan fees. Loan officers can also be mortgage brokers if they also process and manage loans.
Loan officers are sometimes referred to as mortgage consultants, mortgage loan originators, mortgage loan consultants, and mortgage planners. A mortgage loan originator is different from a mortgage banker in that the originator will not make a decision to approve or deny you a loan. A mortgage loan originator, or MLO, sometimes simply known as a loan originator, is a person or entity that is an integral part of the mortgage loan origination process, or the initiation of a loan. Keep in mind that you will pay for the services of the professionals through the loan origination fee that appears on your mortgage application.
Mortgage loan originators can work for a large bank, credit union, or other lending institution, large or small. Ultimately, the right mortgage loan originator will consider your interests and create a seamless application and close experience for you. From the first contact with the originator to pre-approval, applying for a loan and closing, the loan originator will help you move through the process as smoothly as possible. Before meeting with either, take some time to research the best deals available at the time and the types of loans available.
Both a loan officer and a mortgage broker will ask you questions about your financial situation and help you fill out and process a mortgage application. Here's what loan originators do and what you can expect as you work with one during the home loan process. They are independent contractors who offer the loan products of several lenders, called wholesalers. A mortgage broker can save the borrower time and effort during the application process and, potentially, a lot of money during the life of the loan.
Loan officers are aware of the various types of loans offered by the financial institutions they represent and can advise borrowers on the best options for their needs based on their financial circumstances. That said, you should never feel pressured by a loan originator to commit to a certain mortgage product without first understanding what the offer entails.
