A loan officer works for a bank, credit union, or other mortgage lender, and will only offer the programs and mortgage rates that are available at that institution. A mortgage broker works on behalf of the borrower to find the best rate and loan from several institutions. Loan officers are employees of the lender, while mortgage brokers are independent of the mortgage company. The loan officer generally receives a salary, a commission, or a combination of both.
Mortgage brokers receive compensation from the borrower, lender, or both. The fees a mortgage broker receives may not be transparent to the borrower, since they can be paid when a lender charges a higher interest rate. A mortgage broker, on the other hand, must be licensed. They are independent workers who act as “intermediaries” between the homebuyer and the lender.
Mortgage brokers are recommended for homebuyers with poor credit or those who want to negotiate the best terms on their loan. Mortgage brokers are not paid unless they close a mortgage; therefore, they will work diligently to provide the borrower with a satisfactory loan. Choosing between a mortgage broker or a loan broker depends on your goals as a homebuyer. If you're willing to explore different lenders, a mortgage broker may be a point of contact to consider.
If you've chosen your lender and are ready to explore your mortgage options, a loan officer can help you lead the way. Whether you work with a loan broker or choose to work with a mortgage broker, these two professionals can help you navigate the homebuying process with ease. Now, you're considering using a mortgage broker or loan officer to help you find the right mortgage for your needs. Chase, for example, has loan officers called Home Lending Advisors who help you analyze your different loan options and mortgage rates.
A mortgage loan officer is a mortgage specialist who works for a specific financial institution, such as a community bank. If you already know your target lender and are comfortable moving forward on your own, a loan officer will be able to help you. When a borrower has an extensive relationship with a bank, their best option may be to work with a loan officer from that bank. When consumers buy or refinance a home, the first thing is usually to go to a loan officer at a local bank, credit union, or mortgage banker.
They help the borrower with obtaining loans, but instead they are employed by a lender and specialize in loans exclusive to that financial establishment. In the mortgage industry, there are many different professionals and entities that help process loans: large banks, independent mortgage banks, mortgage brokers, loan officers, credit unions, and more. A mortgage broker is an independent loan broker who acts as an intermediary to offer mortgage products from many different lenders. Mortgage brokers are always employees of a brokerage agency and not a bank, which prevents them from approving or denying a loan.
Mortgage brokers are paid through commissions and fees, which often charge between 1 and 2% of the loan amount. By working with a mortgage broker or a loan officer, both help you complete your mortgage application and guide you through the process until your loan is funded. If you're ready to talk to a loan officer, contact Arthur State Bank to request personalized mortgage information today. To compare various offers from loan officers, you'll need to submit mortgage applications to different lenders to receive quotes from each lender.
Meanwhile, mortgage loan originators enjoy job security within the mortgage industry, can help many customers become homeowners and, like mortgage brokers, will enjoy a flexible schedule that changes on a daily basis. Refinance your current mortgage to lower your monthly payments, pay off your loan sooner or access cash for a large purchase. .
