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.

Mortgage brokers are the middle man 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 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 representative of a lending institution, such as a bank, who works to sell and process mortgages and other loans originated by their employer. They often are limited to only loans offered from that specific lender. So, if you have any special needs such as 100% financing, shaky credit, investment property, rural property, second home, etc. often a bank loan officer will not be able to approve your loan. Therefore, you should always check with a local Broker even if you have been turned down by a bank.

Mortgage Brokers, like Whinery Mortgage, can often approve and close loans that banks are unable to approve. And unlike most banks, at Whinery Mortgage we do NOT charge any upfront fees. Whinery only gets paid when and if your loan closes, therefore we are very motivated to get you the loan terms you want and close your new loan as soon as possible. Speed, excellent customer service, and lower interest rate and closing costs are what you should expect from Whinery Mortgage.