Mortgage Broker vs. Loan Officer

When you're looking to get a commercial mortgage loan, you may work with a commercial loan officer or you may choose to work with a commercial mortgage broker. People often confuse the two job types even though both may give the same results: a commercial mortgage. However, it is important to understand the difference between the two types of jobs so you know what to expect from them during the commercial mortgage loan application process.

A mortgage broker is an individual or firm that acts as an independent agent for both the borrower and the lender of a mortgage loan.

Mortgage brokers are the middle man between you and the lending institution, which can be a bank, trust company, credit union, mortgage corporation, REIT, Insurance Company,finance company or even an individual private investor. A commercial mortgage broker will analyze your commercial financial situation to determine which commercial or institutional lender is the best fit for your commercial loan needs. He or she will submit your commercial mortgage application to one or more commercial lenders in order to sell it, and works with the chosen commercial lender until the loan closes. He or she receives a commission if the loan closes.

A professional, licensed commercial loan officer is a representative of a lending institution, such as a bank, who works to sell and process commercial mortgages and other loans originated by their borrower. They often have a wide variety of commercial loans types to draw from, but all originate from that specific lender.

Also known as a commercial loan representative or account executive, commercial loan officers represent the borrower to the lending institution and will guide him or her through the selection, processing and closing of commercial mortgage loan. Loan officers can be paid a commission or salary for their services.