The Difference between Loan Officers and Mortgage Brokers

So are you planning to buy a new house? The first and most important thing is to understand the differences between a mortgage broker and bank loan officers? A Bank officer usually works at a bank or other lending institution for selling and processing mortgages and other loans originated by the employer. They often contain different loan types to draw from but all loans are originating from one lending institution. The loan officer guides the complete process by taking applications and working to find out the best loan option for you.

If your credit is approved, the officer moves forward to process the purchase. Mortgage broker's works as a free agent with different lenders and earn a fee or commission by selling a mortgage to a bank. An experienced mortgage broker can easily find out borrowers the most competitive rates and find out the borrowers with less than perfect credit.

Keep in mind that the more expensive the mortgage, the more the broker gets paid. So brokers may have an incentive not to show you the absolute best loans. You don't need to be anxious about disclosing to a broker regarding the interest rate that you are willing to accept and let them inform you everything likes all the terms they can secure Workaround for making sure that the terms are reasonable.

Most people want to know about which category is better - so a local mortgage broker may find a lender from another part of the country and an online bank might not have a local office where employees can help you one-on-one. Using a local bank can sometimes be a plus because of the experienced staff you would be able to understand about generally local properties, but a distant lender who will delay closing until questions are answered. Mortgage brokers can often find a lender who will make loans that a bank refuses and make you able for a better option.