Mortgage Broker vs. Loan Officer

Friday, October 23, 2009

When it comes to finding the right mortgage for your individual situation many individuals rely heavily on their current financial institution. While this is not, necessarily a bad idea, you may be able to find a better deal if you employ the services of a mortgage broker. A mortgage broker job is very much like a more traditional loan officer, except for the mortgage broker does not work for one financial institution. This difference is what can save the individual thousands over the course of their loan. While there are many other differences between a mortgage broker and a loan officer the one that is the most obvious to the public are the options that they are able to provide.

In today’s economy the lending industry has began to experience a surge in competition and one way that financial institutions have found to meet this competition is by employing the services of a mortgage broker. The mortgage broker will research the options and loans that this financial institution provides, and then he or she will present these options to certain clients. The advantage that the individual has when using a mortgage broker is that he or she is not limited to one lending institution.

A mortgage broker works with many financial institutions to find you the best options that are available for your specific financial needs. This is where the money saving process begins. Mortgage brokers can usually find funding options for those who have less than perfect credit, however it is important to remember that before you attempt to secure any loan that your credit score needs to be as high as possible to get the best rate. While mortgage brokers cannot help everyone in securing a loan they are in a position to help more individuals with a wider range of credit and financial health.

As with any financial service a mortgage broker will charge a fee for their services, and many times that fee is incorporated into the amount borrowed. This allows the broker to continue to work to get the individual the best possible deals on all their financial ventures. A mortgage broker will also be able to give you advice on the funding options that will fit your specific situation and funding needs the best. It is important to take all of the advice that he or she gives you under consideration before committing to a particular loan option.

While one the surface a loan officer and a mortgage broker do the same job, in reality their responsibilities are very different. While the loan officer will try to get you the best possible deal on a loan they only have access to one financial institution, while the mortgage broker has many institutions to choose from, and will use these options to benefit their clients. Using a mortgage broker is one of the few ways that the individual has the odds stacked in their favor, because it gives them the opportunity to shop around for the best possible rate on their mortgage.

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