A loan officer works for an independent bank or lender to help borrowers apply for a loan. Since many consumers work with mortgage loan officers, they are often referred to as mortgage loan officers, although many loan officers also help borrowers with other loans. A mortgage loan originator, or MLO, is the regulatory name of a loan officer. You can check your loan officer's license status by using the Nationwide Mortgage Licensing System (NMLS) consumer access site and entering their six-digit NMLS number.
Too Often Homebuyers Don't Understand the Difference Between a Mortgage Broker and a Loan Officer. A loan officer works directly for a lender, while a broker is an independent party who doesn't work for anyone. This way, a broker can apply for loans from many parties. A mortgage loan officer is a mortgage specialist who works for a specific financial institution, such as a community bank.
A loan officer is very familiar with the products they offer because they specialize in a smaller number of products offered by an institution. They handle your mortgage transaction from start to finish and have established relationships with the other departments that will participate in your mortgage transaction. For example, if there is a problem with your mortgage underwriting, a mortgage loan officer can quickly and easily contact an insurer to find out what is happening and help you resolve the problem. When you need to get a mortgage, there are so many options that it can be overwhelming.
Your choice can have a big impact on the amount of time you spend buying a mortgage and how much you end up paying. By knowing the basic differences between three types of mortgage professionals: mortgage brokers, loan officers, and mortgage bankers, you can find out who can save you the most time and money. Mortgage Brokers Will Look For Mortgages On Your Behalf. They can save you time and money by looking for the best deals available to someone with your financial profile, assuming you are honest, good at your job, and have relationships with many mortgage lenders.
A little confusing, both individuals and companies that fulfill this role are called mortgage brokers. A Mortgage Broker Doesn't Lend You Money and Doesn't Approve Your Loan Application. However, they will collect information about your income, financial obligations, and credit rating to see what types of loans you might qualify for and which lenders will offer you a loan. If a mortgage broker finds a loan that you want to proceed with, they will be the middleman between you and the lender.
They will take your completed application, compile your supporting documents, and transmit any requests for additional information from the lender's underwriting department. Loan officers work for companies such as banks, credit unions, or direct online lenders that lend money to borrowers to buy and refinance homes. They may be able to offer you several types of loans (Federal Housing Administration (FHA), FHA 203 (k), conventional and jumbo) if the financial institution they work for offers them. They may also be able to offer you different combinations of interest rates, points and opening fees for certain credit products.
However, unlike brokers, all of these loans will come only from the loan officer's company, so your selection will be smaller. To receive offers from multiple lenders, you'll need to work with several loan officers at different companies. If you choose to go ahead, a loan officer will take your loan application and submit it to your company's insurance department. They will be the middleman between you and the insurer, and they will help you close.
Throughout these steps, a loan officer performs the same role as a mortgage broker. The Big Difference Between Working With a Mortgage Broker vs. A loan officer comes at the beginning, during the buying phase, where you are trying to find the best deal on a mortgage. A mortgage banker can originate all types of loans, so you will have many options in terms of loan products, just like you would with a mortgage broker or some loan officers.
In addition, they work with all types of applicants, including those who need an FHA loan because of their more relaxed qualifications or military service members who want a VA loan. The best way to choose between a mortgage broker, a loan officer, and a mortgage banker is to talk to all of them. Many people are intimidated by the unknown mortgage process that they don't turn around. It's a big mistake that can cost you thousands of dollars, if not tens of thousands of dollars.
You can and should seek quotes from more than one broker, more than one banker, and several loan officers. Set aside one day, or two consecutive days, to collect all your quotes. Market conditions change frequently, as does your credit report. You won't be able to make accurate comparisons if you receive quotes days or weeks apart.
That said, if you don't have a salaried job, a credit score of 700, and a low debt-to-income ratio, you can save time by bypassing loan officers. If you are self-employed, retired, using assets instead of income to qualify, or belong to some other innovative applicant category, a mortgage broker or mortgage banker may be better suited to you. They typically have the experience and relationships to quickly find the right funding source and have more options to choose from than loan officers. When consumers buy or refinance a home, the first stop is usually a loan officer at a local bank, credit union, or mortgage banker.
Loan Officer Offers Single-Institution Mortgage Rates and Programs. They can generally only offer loans and interest programs from their particular institution. A loan officer can work for a mortgage bank, a credit union, or an institutional bank, and his employer can provide the funds for a mortgage loan directly to the borrower. Both mortgage brokers and loan officers are considered mortgage loan originators (MLOs) and must comply with strict federal requirements to help negotiate mortgage loans.
Mortgage brokers do not close mortgages in their own name, but are the intermediaries between the person applying for the loan and the lender. With your credit and budget information ready to use, you'll be well-prepared to meet with a loan officer to review mortgage options and get a prequalification letter. A loan officer is an employee of a bank or other financial institution and only offers that institution's mortgage products. Keep in mind that you will pay for the services of the professionals through the loan origination fee that appears on your mortgage application.
While you may interact with a loan officer or mortgage banker when you are trying to get a loan for the first time, not all loan officers are mortgage bankers. If you're ready to talk to a loan officer, contact Arthur State Bank to request personalized mortgage information today. A mortgage loan officer is an authorized representative of a mortgage broker, mortgage bank, credit union, or institutional bank who helps consumers apply for a home loan and offers or negotiates the terms of a mortgage loan in exchange for a fee. 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.
Whether you use an agent or a loan agent, you can find out what fees and charges you are paying on the second page of the loan budget you receive when you apply for the mortgage. Loan officers know the ins and outs of the application process, which products are best suited to your financial situation, and how to process your mortgage as quickly as possible. . .
