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.Never miss an episode of our real estate podcast. Install our FREE Podcast App available on iOS and Android. For your Apple Devices, click here to install our iOS App. For your Android Devices, click here to install our Android App. Check my videos on Youtube