Mortgage Broker vs. Loan Officer

2008 has seen many changes to the lending industry with several lenders expanding their retail mortgage networks. What does this mean to you as a consumer? Are you better off with a direct lender like Bank of America, or should you complete your transaction with me? Pacific Mortgage Consultants, Inc. offers highly competitive rates, but there is an even more compelling reason to work with me: I provide unparalleled service. Need to talk at 10 pm? No problem. Want a weekend appointment? I am available. Need a preapproval letter after hours or on a holiday? You will know how to reach me. Worried that I might be out of town or out of the country? Anytime I leave I am sure to either rent a cell phone at my location (if out of the country) or I will be available via email. Want to meet at your home? Just let me know. I do not keep banker's hours!

When you're looking to get a mortgage loan, you may work with a loan officer at a bank 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 loan. However, it is important to understand the difference between the two types of professionals so you know what to expect from them during the mortgage application process.

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, and works with the chosen lender until the loan closes. He or she receives a commission from the borrower, or a fee from the bank (called a yield-spread premium) if the loan closes. If the loan doesn't close, the mortgage broker doesn't get paid.

A loan officer at a specific bank is a representative of that lending institution, and he or she works to sell and process mortgages and other loans originated by their employer. They are limited to the loan products and guidelines offered by their institution so though they often have a variety of loans types to offer, your choice is greater when you work with me. It is also important to note that you do not pay a higher rate or points working with me.