What is a Mortgage Broker?

An individual or company which brings borrowers and lenders together for the purpose of loan origination, but which does not originate or service the mortgages. The broker might also negotiate with the lender to try and find the best possible financing deal possible for the borrower.

A home loan mortgage broker is an independent real estate financing professional who specializes in the origination of residential/ commercial mortgages. Capital sources act as loan "wholesalers". The broker passes on the actual funding and servicing to these loan "wholesalers". They may be contractors working with a number of wholesale lenders. Mortgage broker firm operations originate over half of all the real estate loans (residential) in the US. A home loan mortgage broker has the best professional expertise with direct access to hundreds of loan products, providing consumers cost-effective and efficient options that cater to their specific needs. The mortgage loan broker would assess the financial details of the customers and search through the posted rates to find the best one for the customer. The process of mortgage lending is a complex one. The real estate broker acts as a mentor to the consumer, guiding him through the entire process, offering extensive choices and balancing the customer's financial goals. They use innovative loan packages to allow low-to moderate-income borrowers, with less than perfect credit histories, to enjoy the benefits of home-ownership. A home loan mortgage broker is neither a mortgage lender nor a banker. He is a real estate financing professional acting as an independent contractor. The range of products and services offered by them is growing everyday. Under certain circumstances, a real estate negotiator may act as a banker, when funding loans. A home mortgage broker also provides the best help in assessing the requirements and saving the time. Home mortgage loan brokers have contacts with many lenders, this aspect enables them to offer cheap loans to the borrowers. They also offer advice on the ways of overcoming the barriers to loan qualification. Several federal laws and regulations and dozens of state laws and licensing boards regulate the home real estate brokers.