Mortgage Broker Versus Mortgage Loan Officer - Which is Right for You?

In the process of searching for the best mortgage, you may come across both mortgage brokers and mortgage loan officers. What’s the difference and which one should you work with in securing the best loan at the best rate with the best service?

Mortgage brokers are independent individuals who work for themselves. They interact with many different banks and lenders to help you find the best mortgage for the best rate. They have to be licensed. Because they are not associated with any one institution, mortgage brokers can contact banks across the country on your behalf, giving them a wide pool of potential lenders. Brokers often receive commission once a borrower’s loan is finalized. While they may be motivated to close your loan because of this commission, they can also be motivated to put a borrower into the wrong loan if the commission is higher. This happened quite a bit before the financial crisis.

Mortgage loan officers generally work for either the lending department of a bank (like Wells Fargo or Chase) or for a mortgage only lender (such as PrimeLending or Sente Mortgage). In both cases, the loan officer is a representative of that institution. Depending upon the type of institution they work for, the loan officer may or may not be licensed, although all mortgage lenders are required to take the same training. Loan officers work to help you find the best product from the institution they work for. Loan officers working for banks may or may not receive commission while those working for mortgage only lenders usually receive commission.

Which Is Better for You?

When trying to find the right loan, should you use a mortgage broker or a mortgage loan officer? Why not both?

Using sites like BestCashCow, you can identify lenders that offer competitive rates and terms for the type of loan you are looking for. Contact your bank or a mortgage only lender and see what they can do for you.

Find the best mortgage rates from banks near you.

At the same time, it doesn’t hurt to contact a mortgage broker to determine what their best offer is. Generally, if you have poor credit, a mortgage broker might be a better option because they can check a borrower’s numbers with multiple institutions.

If you need a loan to close fast, then a mortgage loan officer, particularly one at a mortgage only lender might be better. With a mortgage only lender, all processes are set up to quickly and effectively close loans. Also, you will work with an actual employee of the organization who knows the lender’s process and can more easily connect with the processers and underwriters who work on your individual loan.

Another consideration is the location of the broker or loan officer: someone who is local to your area will understand local conditions. Items such as unfamiliar heating systems, zoning codes, etc. can confuse big or out-of-town lenders, which can increase the time it takes to close.

The bottom line is that if you want to find the best mortgage product at the lowest rate, it makes sense to speak to a mortgage broker and a mortgage loan officer that specializes in mortgage loans.

;In the process of searching for the best mortgage, you may come across both mortgage brokers and mortgage loan officers. What’s the difference and which one should you work with in securing the best loan at the best rate with the best service?

Mortgage brokers are independent individuals who work for themselves. They interact with many different banks and lenders to help you find the best mortgage for the best rate. They have to be licensed. Because they are not associated with any one institution, mortgage brokers can contact banks across the country on your behalf, giving them a wide pool of potential lenders. Brokers often receive commission once a borrowers loan is finalized. While the may be motivated to close your loan because of this commission, they can also be motivated to put a borrower into the wrong loan if the commission is higher. This happened quite a bit before the financial crisis.

Mortgage loan officers generally work in the lending department of a bank. They are the representative of that institution. They do not need to be licensed and work to help you find the best product from the institution they work for. They often do not receive commission.

Which Is Better for You?

When trying to find the right loan, should you use a mortgage broker or a mortgage loan officer? Why not both? Using sites like BestCashCow, you can identify banks that offer competitive rates and terms for the type of loan you are looking for. Contact the bank and see what they can do for you.

Find the best mortgage rates

At the same time, it doesn’t hurt to contact a mortgage broker to determine what their best offer is.

Generally, if you have poor credit, a mortgage broker might be a better option because they can check a borrower’s numbers with multiple institutions.

If you need a loan to close fast, then a mortgage loan officer might be better, because they know the bank’s process and are an actual employee of the organization. In addition, because a mortgage broker is most likely local, they understand local conditions. Items such as unfamiliar heating systems, zoning codes, etc. can confuse out-of-town lenders.

The bottom line is that if you want to find the best mortgage product at the lowest rate, it make sense to speak to both a mortgage broker and a mortgage lender from a bank that specializes in mortgage loans.