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Mortgage Broker
What Is a Mortgage Broker?
A mortgage broker is an intermediary who connects borrowers with lenders.
Instead of lending money directly, brokers shop multiple lenders to find loan options that match the borrower’s profile.
They act as facilitators during the mortgage process.
Why a Mortgage Broker Matters
A broker may:
- Compare multiple loan products
- Help navigate underwriting requirements
- Assist with documentation
- Identify competitive rates
Brokers can expand options, especially for borrowers with unique credit profiles.
However, compensation structures vary. Some are paid by lenders, borrowers, or both.
How a Mortgage Broker Works
- Borrower submits application to broker.
- Broker evaluates financial profile.
- Broker presents loan offers from partner lenders.
- Borrower selects preferred option.
The lender ultimately funds the loan.
Mortgage Broker vs. Mortgage Banker
Broker → Connects borrower to lender
Banker → Funds loan directly
They serve different roles in origination.
FAQs About Mortgage Brokers
Do brokers charge fees?
Sometimes. Always review disclosures.
Can brokers guarantee approval?
No.
Do brokers set interest rates?
No. Lenders set rates.
Related Terms
