What Is a Mortgage Broker?
Investopedia Definition: A mortgage broker is an intermediary who brings mortgage borrowers and mortgage lenders together, but does not use their own funds to originate mortgages. A mortgage broker helps a borrower connect with lenders who represent the best fit in terms of the borrower’s financial situation and interest-rate needs. The broker also gathers paperwork from a borrower and passes that paperwork along to a mortgage lender for underwriting and approval. A mortgage broker should not be confused with a mortgage banker, which closes and funds a mortgage with its own funds.
Advantages of using a Mortgage Broker
When compared to banks or credit unions, mortgage brokers have one distinct advantage:
Brokers have access to a variety of different lenders. Thus, they are able to customize the mortgage for any specific borrower.