MORTGAGE BROKER

A Mortgage Broker is an independent loan originator that helps you, the consumer, find a loan that fits your needs. They work with many different lenders; therefore, have a VERY wide variety of programs to fit almost any situation.

Consider the following reasons why bypassing a mortgage broker and going directly to a bank can be limiting:

• Banks are product oriented.  They have only their programs to offer and, if you don't fit or don't like them, they'll send you away having wasted your valuable time. Very few individuals fit the bank's required "perfect loan scenario".
  
  
• Banks tend to focus solely on the A-credit borrowers and require low loan to value ratios. (Loan To Value is the percentage you intend to borrow in relation to the value of the collateral)
  
  
• Banks don't see enough of the credit challanged borrower to be able to offer the advice and information you need to put yourself back on track to be a more solid loan applicant.
  
  
• Mortgage brokers have access to almost every loan program in the marketplace, providing a one-stop shop.
  
  
• Mortgage brokerage firms only get paid if your loan closes, giving them incentive to get the job done.
  
  
• Mortgage brokers can act as a filter, helping to determine how to present your loan package in the most favorable way.
  
  
• Good mortgage brokers are accustomed to comparing and contrasting many different loan programs - finding the best one for your situation, regardless of the lender.
  
  
• Good mortgage brokers are willing to work with you months in advance to help prepare you and/or your loan.
  
  
• Good mortgage brokers may identify other loan programs for your situation, such as a refinance to help your cash position.
  
  
• Many mortgage brokers are dependent upon referral business, making them more concerned with your happiness.

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 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.