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.

As Mortgage Brokers, we at First Southeast Mortgage Corporation have the ability to work with many lenders to find the one with the lowest rates and best terms to meet your individual needs. As brokers, we are accountable to YOU and not the lending institution and therefore we can advocate on your behalf with lenders and their underwriters. A bank officer may not have this ability as they are accountable to their employer. YOU are our employer. We are also accessible to you day or evening, not just during banking hours. Lastly, and most importantly, we have access to wholesale rates, which are most often lower than the retail rates you would receive by going directly to the bank. We also have lower fees than most banks or other brokers.

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 have a wide variety of loans types to draw from, but all originate from 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.