OK: Bank loan officers are employees who work to sell and process mortgages and other loans originated by their employer. They often have a wide variety of loans types to draw from, but all loans originate from one lending institution. Loan products are limited, which may greatly affect your rate, cost, and options. These loan officers represent the borrower to just their lending institution and will guide him or her through the selection, processing and closing of mortgage loan. Loan officers can be paid a commission or salary for their services.

Better: A Mortgage Broker is a firm that is the middle man between you and the actual lending institution.. They will originate your loan and take all the steps necessary in closing the loan. They have NO money of their own, NO underwriters and CAN NOT provide loan commitment letters.  Brokers can charge the borrower a middleman fee when the loan closes.

Best: A Direct Lender is a firm that originates, processes, underwrites, provides loan commitments, closes, and funds their own loans with their own money.    Most have in-house underwriters, and have direct access to loan products from all the big national players. If a loan product exists, they can usually offer it. Direct Lenders typically bundle and sell your loan after closing to giant Fannie Mae or Freddie Mac servicing companies. Lenders are the best of both worlds. Loan officers can be paid a commission or salary for their services.