Know what to expect: Mortgage Brokers and Loan Officers

Either a mortgage broker (me) or a loan officer (bank or builder representative) can work with you when you apply for a mortgage loan. Because a new home is the outcome of the work of both mortgage broker and loan officer, people frequently confuse them. It will help if you know their differences.

You have the right to choose the best mortgage for you and remain protected by the Consumer Financial Protection Bureau and numerous other Federal and State regulations, no matter which path you choose.  Just remember, you have the right to choose.  Your realtor, builder or contractor, though a great source of information, should only be one referral source.  

Mortgage Brokers

An independent mortgage broker is very much like a charter boat captain.  They're free to take you the very best fishing spots, they know where the best fishing is and provide one-on-one attention.  

A mortgage broker is an individual or group serving as an independent agent for both the mortgage loan borrower and the lender. We are licensed by the State of Florida and federal agencies and must complete and document regular training to ensure our competency.  I will stand between you and the lending institution; which can be a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. As a mortgage broker, I consider your financial circumstance and lead you to the lender who has the right loan for you. From application to closing, My team and I work with you: presenting your loan application to several lenders, and coordinating the process with the lender through to the closing of the loan. In many cases, I'm paid by the lender though I can be paid by either, depending on the rate and terms you choose.  This will be disclosed on your Loan Estimate, prior to you making any decision or commitment.  

Chose a mortgage broker that has demonstrated knowledge and experience.  I've been lending for over 30 years and have expertise in all areas of residential and commercial lending.  This is particularly important for self employed borrowers and those with more complicated sources of income.  

About Loan Officers

Loan Officers with big banks and national lenders are very much like party boats.  They have a fixed schedule, take everyone to the same fishing spot trip after trip and are often limited in the options.  When your fishing line gets crossed with someone beside you, and it will, or even from the other side of the boat, you're left waiting while the crew works their way to you.  Often, you spend valuable time waiting in line.  

Lending Institutions (banks, finance companies, builder's related lenders and others) employ loan officers to offer, and process loans solely from that specific institution. They may be able to promote loans to fit a variety of situations, but all the loans will be products from the same lender.

Your loan officer will represent you to the bank or other lending institution. A mortgage banker will walk the borrower through the application, processing, and closing of the loan. Lending institutions pay their loan officers a salary or commission.  Loan officers may or may not have as much control of the application, approval and closing process as dictated by the lender's policies and procedures.