Purchasing a home or refinancing a mortgage involves several different parties and multiple steps are required by each one. Lenders and brokers need loan applications filled out, financial documents turned in, fees paid, and questions answered.
It can be hard to keep track of everything. Luckily, you don’t have to go it alone. Mortgage loan originators will not only fund your loan, but they’ll also help walk you through the process to ensure you make it to the closing table.
What Is A Loan Originator?
A mortgage loan originator (MLO) is a person or institution that helps a prospective borrower get the right mortgage for a real estate transaction. The MLO is the original lender for the mortgage and works with the borrower from application and approval through the closing process. An MLO can be a lending company, mortgage broker or loan officer.
Mortgage Loan Officer
The term “loan officer” refers to an individual acting as an MLO. Loan officers may work for a direct lender or as a mortgage broker who partners with several different lenders to find you the loan option that best aligns with your personal finance goals, budget, and preferred loan terms.
What Do Loan Originators Do?
MLOs will work with you through the steps of getting a mortgage, answering questions, collecting documents, and verifying information. If you’re purchasing a home, they’ll also provide an estimate of your loan amount and interest rate based on a review of your income, credit report and assets. This mortgage preapproval can help you figure out your home buying budget and show real estate agents and sellers that you’re willing and able to purchase the home.
The MLO will continue to work with you through the application process, into underwriting and help ensure you’re ready for closing. Remember, an MLO can be a person or institution. While the loan officer is the person who works with you, the lender is the institution that initially funds the loan. A mortgage lender can be a bank or non-bank organization, like Rocket Mortgage® or UWM®.