What's the difference between a loan officer and a mortgage broker?

Looking to finance a home but not sure where to start? Read on to learn about the difference between a loan officer and a mortgage broker.

What's the difference between a loan officer and a mortgage broker?

A loan officer works for a bank, credit union, or other mortgage lender, and will only offer mortgage programs and rates 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 usually receives a salary, a commission, or a combination of both.

Mortgage brokers receive compensation from the borrower, the lender, or both. The fees a mortgage broker receives may not be transparent to the borrower because they can be paid when a lender charges you a higher interest rate. 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. Choosing between a mortgage broker and a loan officer depends on your homebuyer goals. If you're willing to explore different lenders, a mortgage broker can 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 lead the way. Whether you work with a loan officer or choose to work with a mortgage broker, both professionals can help you navigate the home buying process with ease. Seeking the advice of a mortgage broker can help you get a better idea of the different types of mortgages available. They handle your mortgage transaction from start to finish and have established relationships with the other departments that will participate in your mortgage transaction.

If you're ready to talk to a loan officer, contact Arthur State Bank to request personalized mortgage information today. 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 resolve the problem. Find out the differences between mortgage brokers, lenders, and loan officers, so you can be informed when you take the next step. Once you have your loan approved, make sure you don't change anything that could affect the status of your mortgage.

In addition, if you get a mortgage through a bank with which you have a relationship, you may qualify for the ratio price of your mortgage. Mortgage brokers save time and energy by accepting an application that can be purchased by several lenders. They connect the borrower to different lenders so that they can find the mortgage that best suits their needs. On the other hand, you will have to wait for the mortgage lender to approve the loan and for it to be paid on a commission basis, which does not guarantee a fixed salary.

Mortgage 1 (the Company) maintains policies and procedures designed to protect the integrity and security of consumer and customer information. As soon as possible after you submit your mortgage application, you should schedule your home inspection. A mortgage broker is an independent loan officer who acts as an intermediary to offer mortgage products from many lenders.