When you need to borrow money to buy a house, getting a mortgage is essential to your success. There are a few different ways that you could approach getting a mortgage, and all of them have some merit, depending on your situation. Two of the most popular options out there involve working with a loan officer or working with a mortgage broker. While these individuals are similar, they are not the same. They both offer some unique features that you can't get anywhere else. Here are a few things to consider about the differences between mortgage brokers and loan officers.

Loan Officer

A loan officer is an individual who works for a bank and helps facilitate mortgage loans. When you go into a bank and ask to apply for a mortgage, a loan officer is the one who will assist you. They'll tell you all about the loans that they have available and they'll help you get the right applications to fill out. Once you complete your loan application, the loan officer will collect any other documentation from you that is necessary for the loan. After everything is compiled, the loan officer will turn it over to an underwriter.

Broker

A broker is an individual who does not work for a bank, but is typically self-employed or works for an independent company. Brokers do not work with individual lenders, but instead have relationships with many different lenders. When you go to a broker, you'll provide them with some information about what type of loan you are looking for. You'll also give them your personal information so that they know what type of income and credit profile they are working with.

At that point, the broker goes out and tries to find you the ideal loan. Since the broker works with multiple lenders, he may be able to find you the best loan in the industry for your situation. This gives you a lot more flexibility than when you work with just a single lender. The broker typically has relationships built up that help him find the best loan products out there.

Once the broker finds a loan that fits your needs, you will then begin the application process. You'll fill out all of the loan documents with the broker and he'll submit them to the lender. At that point, the broker will be compensated by the lender for bringing in the borrower.

Considerations

While both of these individuals play an important role in the mortgage loan process, they are involved in different areas. If you like one particular lender and you want to work with them, then a loan officer will be the person that you deal with. If you don't have any specific preferences about which lender you want to work with, but you are instead interested in finding the best deal, then hiring a mortgage broker is the best option to look at. With a broker, you'll be able to save money over the long term and save time looking for the best loan.