Buying a home? You might have heard about mortgage brokers and you might have also heard about loan officers. But here's the thing, these two professional jobs are not the same - confusing, right?
The difference between these two persons are basically based on how they get paid. Mortgage brokers are the ones who do the heavy jobs for you like searching for the most appropriate lender with the best loan option, and they are paid with a percentage of a person's total loan amount. Loan officers on the other hand, work for institutions like banks, lenders, or credit union and they get paid to write loans.
Brokers
Mortgage brokers' job is to make your life easier during your home buying. They don't work for any institution. Instead, they are your relationship builder if you are finding institutions that will cater to your mortgage needs. Brokers won't be the one to lend you money, but they will be the one to find you a lender.
A broker will help you fill out your mortgage application and they will also help you figure out what your current financial situation is. Once your financial status is established, the broker will find the best lender to offer you a loan. If your credit score is low, your broker is the best person to find you lenders that are willing to offer you a mortgage.
Brokers works with the borrower throughout the process and they are typically paid a percentage of the loan's total amount by the lender.
Loan Officers
Loan officers work for the lending institution and this person is the one who write loans for that individual company. Loan officers also needs borrowers to fill out an application and and they also check the borrowers' credit record to get a better understanding of their financial status. After which, loan officers will tell the mortgage applicant which loans they are qualified for.
The difference between a loan officer and a mortgage broker is that the loan officer specializes in his/her company's loans, while a broker's scope is not limited to only one company. If you get a loan officer's assistance, this person will offer you the best loan options the company has for you, which is also good since the loan officer is able to give you an in depth presentation of loan options. Mortgage brokers' assistance on the other hand, are best used when a borrower is still uncertain where to start and also to be introduced to a larger number of loan options.
