What are the Responsibilities of a Lender vs a Realtor

When you want to buy a home, you rely on two professionals, a loan officer and a real estate agent, to help you through the process. While first-time homebuyers are likely to already know what a real estate agent does, they might not exactly understand what loan officers do. While it may seem that the responsibilities of the two professions overlap from the outside, we'll go over the differences below.


Responsibilities Of A Lender

A mortgage lender loans money to a homebuyer to purchase a property. A lender is a bank, a credit union, or some other financial institution, public or private group, that makes loans directly to you. People often confuse lenders for mortgage brokers or loan officers. A mortgage broker helps potential homebuyers find the best mortgage lender for them. They don't lend you money or approve your loan application, but they may ask questions about your financial situation, your credit score and might help you fill out your application.


A loan officer often works for the lenders, but their primary financial duty is to their clients. They suggest ways to increase your credit score to lower future monthly payments and obtain better interest rates. They help potential homeowners decide on which loan is best for them and provide information regarding each type of loan. They must not mislead or make it confusing for the borrower and must use plain language in a clear, concise manner. The lender processes loan applications, recommend financially feasible loan proposals, and evaluates the homebuyer's credit.


Responsibilities of a Realtor

A realtor and a real estate agent aren't the same things exactly. A realtor is a real estate agent or a real estate broker who is a member of a private organization called the National Association of Realtors. The organization enforces realty standards in the country, and members of that organization must follow the code of ethics the organization created, plus the standards of the state in which they practice.


A real estate broker reviews contracts, and manages the financial transactions and operations of the real estate company. They are usually either a manager or owner of a real estate agency. A real estate agent works under a real estate broker and helps guide clients through the purchase or sale of their property. They undergo regular training and must follow the licensing and standards for each state. A real estate agent can be a loan officer as long as they're licensed. However, they must follow strict guidelines, and the real estate agent doesn't have the authority to authorize a government loan, such as a USDA or FHA loan for their clients.


Equity Mortgage Lending is here to help with all your mortgage lending needs. Our goal is to provide our clients with the home loans they seek with the lowest closing costs and interest rates possible. Contact us by filling out our online form, or call us at 1-800-332-9221 if you have questions about the mortgage process or to take the first step towards owning a home.


* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.