Are you wondering what the difference is between a loan officer and a mortgage broker when it comes to financing for your home? If you are looking for a mortgage, you have two main options when it comes to getting advice. One is a loan officer, the other a mortgage broker. The term mortgage broker is often used interchangeably with “loan officer,” but there are very important differences. This video will help break this down.
A mortgage broker is a type of mortgage business, while a loan officer is a salesperson paid to give you the information needed to choose a mortgage that fits your needs. A mortgage company is a financial firm that underwrites and issues (originates) its own mortgages to homebuyers, using their own capital to issue the loans. A loan officer works for a bank, credit union, or another mortgage lender.
They offer programs and mortgage rates from just this institution. In contrast, a mortgage broker works on a borrower’s behalf to find the lowest available mortgage rates and the best loan programs available through multiple lenders. The mortgage broker does not provide the funds to purchase a property, rather they connect the two parties. A direct lender can provide the funds at closing for the buyer.