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Mortgage Brokers vs. Bank Loan Officers

Unless you plan to pay cash for your home purchase, you most likely will need a mortgage. Did you know there is a difference between mortgage brokers and bank loan officers?

Bank Loan Officers
The loan officers at a bank, credit union or other lending institution are employees who work 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 loans originate from one lending institution.

Mortgage Brokers
Mortgage brokers are professionals who are paid a fee to bring together lenders and borrowers. They usually work with dozens or even hundreds of lenders, not as employees, but as freelance agents.

The mortgage broker working to secure your loan is earning a fee for the transaction and the better deal they achieve for a lender, the more they are paid. Shop around to make sure the terms are reasonable.

What Difference Does it Make?
Mortgage Brokers that advertise online may be located out of town and have no local offices. Check to ensure that the Broker has local knowledge of the real estate market in your area. This will reduce the possibility of delays.

Using a local bank has some advantages. The process from loan application to closing is typically more streamlined. Mortgage Brokers will typically have wider and more flexible loan products for your selection. This is especially important if you have a unique situation.

We would be happy to recommend a Mortgage Broker or a Mortgage Banker. 303-880-2585 and ask for John.