What does a mortgage loan originator do?

A mortgage loan originator is a real estate term you may come across when buying or refinancing a home. In short, mortgages wouldn’t exist without their originator, meaning the one who either creates or initiates the mortgage itself. Not only do mortgage loan originators create your mortgage, but they can also help answer questions so you can make an informed decision about which mortgage loan meets your needs.  

If you’re in the market to purchase a home, or are looking to refinance, it’s helpful to know what a mortgage loan originator does and how they can help you.

What is a mortgage loan originator?

A mortgage loan originator can be either a bank or financial institution that makes and sells mortgages, but the term can also apply to a person employed by them that helps you get a mortgage.

Individuals who act as mortgage loan originators are also referred to as loan officers. You can think of them the same way you may think of a project manager. The Loan officer confirms the information on your application, collects documents to support your request, helps negotiate the mortgage program terms based on your finances, and track deadlines and help you close your loan.

Chase itself is a mortgage loan originator, but we also have loan officers that are called Home Lending Advisors, that will help facilitate your mortgage journey from starting a preapproval, to applying and, eventually, closing.

Does a loan originator cost money?

Technically, yes, a loan originator does cost money, but loan origination fees are a standard part of closing costs. The loan origination fee may cover the processing and administrative work done by your loan officer, processor, and underwriter. The interest on your mortgage loan may help cover these fees as well. The disclosure forms you will receive as part of your mortgage application will include information on all the above.

What we’ve learned

Mortgage loan originators are both financial institutions that create mortgages and certain individuals employed by these institutions who help facilitate the mortgage application process for borrowers. Mortgage loan originators are sometimes referred to as loan officers and are here to help you as a buyer with getting a mortgage. As the borrower, your mortgage loan originator helps guide you from preapproval to closing.