Careers

what is a mortgage broker ?

A mortgage broker is an intermediary who brings mortgage borrowers and mortgage lenders together, but who does not use their own funds to originate mortgages.

A mortgage broker helps borrowers connect with lenders and seeks out the best lender for the borrower's financial situation and interest-rate needs. They do the legwork so a borrower doesn't have to.

The mortgage broker also gathers paperwork from the borrower and passes it along to a mortgage lender for underwriting and approval purposes. The broker earns a commission from either the borrower, the lender, or both at closing.

Advantages and Disadvantages of Mortgage Brokers

Advantages
Mortgage brokers can save borrowers time and effort by finding a variety of potential lenders for them.
They can help borrowers avoid lenders who may not meet their needs or even be unscrupulous.
The can provide borrowers with access to lenders that might otherwise not be available to them.
They can offer impactful financial savings through potential fee waivers and better loan rates.

Disadvantages
Some lenders you contact directly could offer the same or better terms they'd offer through a mortgage broker.
You pay a fee for a mortgage broker's services.
Some lenders don't work through mortgage brokers and you could miss out on a lender offering attractive loan terms.
Some mortgage brokers may have conflicts of interest, e.g., direct you to lenders who pay them more rather than to those who are better for your needs.