The main difference between these securities is that mortgage brokers are employed by a sponsoring broker, while mortgage loan originators and officers are. A loan officer (also called an account executive or loan representative) represents the borrower before the lending institution. From choosing a loan product to closing, a loan officer will help you through the process. Employers can pay a commission or salary for their services to loan officers.
Loan officers assist clients with the application process and are familiar with the loans offered by their financial institutions. Unlike mortgage brokers, these people don't compare options between institutions. Instead, they focus on helping borrowers find a loan product that they qualify for and can afford. They also know the rules of the banking industry and how these rules will apply to each loan request.
Whether you choose to work with a loan officer or a mortgage broker, pay close attention to the fees and commissions they'll charge. Mortgages come in several types of loans, have several requirements, require certain documents, and vary in terms by different lenders and state laws. They're independent contractors who offer the loan products of several lenders, called wholesalers. After all, buying a home is a long-term commitment, and well-established relationships will now likely endure the life of your loan.
The main difference between these securities is that mortgage brokers are employed by a sponsoring broker, while mortgage loan originators and officers are employed by a bank or mortgage company. Many people pre-qualify for a home loan months and even years before closing a new home. When you call a bank or credit union to apply for a loan, provide supporting documents, or determine if you qualify beforehand, you'll talk to a loan officer. Loan officers can be advocates and educators for borrowers, but that's because their goals are aligned.
But it's possible to change a new loan officer at the same financial institution if the one initially assigned to you doesn't respond or has an aggressive bedside attitude. Increases the mortgage loan portfolio by developing commercial contracts, attracting mortgage customers, completing processing and closing mortgage loans. Loan officers must have a thorough knowledge of credit products, rules and regulations of the banking industry and the documentation needed to obtain a loan. Loan officers can work for a direct lender or as a mortgage broker who partners with several lenders to find the loan option that best fits your personal financial goals, budget, and preferred loan terms. Most mortgage loan originators are paid on a fee basis, but compensation may vary from office to location.
Mortgage brokers are paid through commissions and fees, and often charge about 1 to 2% of the amount.