Mortgage Broker vs. Loan Officer

When you're looking to get a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker.  People often confuse the two job types even though both will glean the same results: a new home. However, it is important to understand the difference between the two types of jobs so you know what to expect from them during the mortgage application process.

A mortgage broker is an individual or firm that acts as an independent agent for both the borrower and the lender of a mortgage loan. If working with a licensed mortgage broker you are working with a profesisonal who taken the time to meet California's educaitonal requirements and has years of expeince in finding the right loan for you.

A mortgage broker will analyze your financial situation to determine which lender is the best fit for your loan needs. He or she will submit your mortgage application to one or more lenders in order to sell it, and works with the chosen lender until the loan closes. He or she receives a commission from the borrower if the loan closes.

A loan officer is a generic term used for anyone who takes a loan application.  They can work for a lender or mortgage banker, but many of them do not have a license other than that held by the institution they work for and many times do not have the experience to suggest the right loan for you.