When someone applies for a mortgage, they may not be aware of how many professions are involved in their application. Occasionally, different people with different jobs can deal with their applications. This includes mortgage bankers and loan officers. But what is the difference between- these two jobs?

What is the Difference?

The fact of the matter is that there isn’t much difference between- a mortgage banker and a loan officer. In some respects, the work that they do can be very similar. However, if you’re trying to get a loan, you can find that not all loan officers are actually mortgage bankers. The reason for this is loan officers tend to work for one financial institution. However, mortgage bankers work for banks, credit union-s, and other financial institutions. These are the entities that are responsible for lending money for mortgages or for business loans.

Mortgage Banker

Mortgage bankers will typically look for mortgages for you. The work that they do can save you a lot of time as they will search for some of the best deals out there. They will occasionally consult with their boss, a mortgage originator for the best mortgage.

Mortgage bankers can underwrite and approve your loan. They can also help your loan to close. The money that they lend you will be from their funds or a bank. Working to find you a good deal, a mortgage banker works with a range of applicants. With at least a decade of experience in the industry, most people need a license to have this position. However, the need for a license can vary between- states.

Loan Officer

Loan officers are different from mortgage bankers because they can work for online lenders, credit union-s, or banks. They can help people to borrow money to refinance or buy a home. In addition to this, loan officers can offer different types of loans. Conventional loans, Federal Housing Administration loans, and other loans could be available. However, the type of loan they offer can depend on the organization they work for.

There will be a much smaller selection of loans for you to choose from. This is because, unlike mortgage bankers, loan officers don’t have access to a lot of loans. The loans they have access to are approved by their employer.

When it comes to applying for a loan, loan officers work in a similar way to mortgage bankers. They can potentially offer you different interest rates, origination fees, and points.

What’s the Difference?

The difference between- mortgage bankers and loan officers is how they shop for a mortgage. A mortgage broker will have a wider choice to offer you, where'as loan officers are limited. This does not mean it’s not worth speaking to a loan officer. You should just be aware of the limitations that they have.

Consider what type of loan you’re looking for and who can help you. The right person could help you to find a loan that’s right for you.

Qualities of a Good Mortgage Banker

Finding the right mortgage banker is one of the major factors of the home buying or even home selling processes. However, it can be a very challenging and time-consuming task to choose one. Therefore, we decided to help you and list you some of the most important qualities that a good mortgage banker must have. In that way, you can be peaceful that you choose the one that can provide you the service you deserve as a client. Let’s see them!

A good mortgage banker is willing to walk you through the entire mortgage process

Every good mortgage banker knows how important is to their clients to get fully informed about the whole procedure that waits for them. Therefore, they will ensure that you understand the entire mortgage procedure especially if this is your first house. In that way, you will know what requirements for your loan are and which documents you need to provide.

A good mortgage banker is replying to you

One of the most important qualities of a good mortgage banker is responsiveness. If the banker is always there for you and shows interest in staying in touch with you, you will feel like he is taken you seriously and that you are his priority. In case you are trying constantly to get in touch with a banker and he is not replying to you, you will become very frustrated. Additionally, the whole process will take a lot more time to be completed.

A good mortgage banker is willing to answer all your questions and ask some as well

Logically, you will have lots of questions as a client, whether you are a first homeowner or you purchased some real estate before. Therefore, not only that a good mortgage banker needs to reply to your concerns, but also take time and ask you questions on his own. In that way, you will be sure that he is looking for the financial option that would be best for your situation.

A good mortgage banker is prepared

Every successful and professional person in the mortgage industry needs to be organized. This means that he needs to create a specific schedule, to-do list and he needs to complete all the tasks on time. In that way, you can be sure that you gave the job in the right hands and you will not worry about whether something can go wrong.

A good mortgage banker is direct

Clients are always looking for a mortgage banker that will honestly answer all of their questions instead of evasively. Therefore, it is very important to find a forthright and direct mortgage banker. If you two have to trust in each other, you can create a bond which is a key to every good cooperation.

Good mortgage bankers continuously learn more about their field

You should know one thing about the mortgage industry – it is constantly changing, so it is very important to keep track of those changes if you are working in that field. If you find a mortgage banker that is not aware of these changes, you will not get the right guidance about your loan options.

Good mortgage bankers don’t put any pressure on their clients

We understand how making the decision about a loan type can be difficult. Therefore, your mortgage banker needs to be aware of this too. If you see that your loan originator has patience and he is not trying to rush you, you chose a good one.