Mortgage Broker vs. Loan Officer

When you're looking to obtain 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 functions even though both will develop similar results: a new home. It is critical to understand the difference between these two designations so you know what to expect during the financing process.

A mortgage broker is an individual or firm acting as an independent agent for both the borrower and the lender of a mortgage loan.

Mortgage brokers can be your advocate between you and the lending institution, which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual private investor.

A mortgage broker will analyze your financial situation to determine which lenders best meet the needs of your specific circumstances. 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 earns their compensation only when the financing is completed.

A good mortgage broker acts as an advocate for the borrower, learning of the client's wants, needs and dreams and then searching out the best options for their client.  As a seasoned professional, a competent mortgage broker may well pick and choose amongst various lenders and their programs to combine the best products for a given client's circumstances.  Comparing and contrasting programs for a client's choosing is the behavior of a seasoned professional.

A loan officer represents a specific lending institution, such as a bank, and works to sell and process mortgages and other loans originated by and for their employer. They often have a wide variety of loans types to draw from, but are generally limited to provide loans only offered by that specific lender.

Also known as a loan representative or account executive, loan officers represent the borrower to the lending institution and will guide him or her through the selection, processing and closing of mortgage loan. Loan officers can be paid a commission or salary for their services.

As a CMPS, Certified Mortgage Planning Specialist, Sam Croskell and his TEAM are uniquely qualified to assist you in securing the best options for your mortgage financing.