Mortgage Broker or Loan Officer: Choosing the Best for You

Deciding whether you should work with a mortgage broker or loan officer can be extremely difficult. Often, mortgage brokers are helpful regardless of your credit situation because they have access to so many different loan products.  A loan officer on the other hand, will only be representing the specific loan product for his or her bank. However, choosing which service is most beneficial for you depends on your needs.

Advantages and Disadvantages

Mortgage brokers have access to several different products and do most of the legwork for you in finding a lender, submitting paperwork, gathering verifications, and submitting your loan package. They can even help you lock in your interest rate. However, mortgage brokers also charge a commission and can increase your closing costs.

Loan officers may only offer limited products, but if you have good credit and can work with a loan officer at your bank, you are less likely to end up with a loan that is subsequently sold to another lender and may get more personal service. However, you may have to do most of the legwork yourself as far as providing verifications and gathering the required information.

Ultimately, the choice depends on your available time and your needs. Whomever you choose should be honest with you about the cost of their services and be willing to provide references at your request.