Frequently Asked Questions
A mortgage broker offers the loan products of various lenders, while a lender provides the actual loan money to the borrower. Essentially, a mortgage broker is a loan provider who serves as a liaison between borrowers and lenders.
Unlike a bank, a mortgage broker works with borrowers, assisting them in finding appropriately matched mortgage loans. Typically, a mortgage broker learns the needs of the borrower and they shop for the best loan deal from multiple lenders offering that particular type of loan. Brokers usually have a network of numerous lenders and then they attempt to match the right lender with each individual client. Because mortgage brokers usually have hundreds of lenders in which to choose from, they are more likely to find loans for borrowers with special needs, like problem credit.
Part of the job of a mortgage broker is to accept applications from borrowers and seek to lock in rates and terms with lenders. Additionally, brokers gather all the necessary documents such as credit reports, employment verifications, asset disclosures, and property appraisals. Once an application file is deemed complete, the mortgage broker submits it to the appropriate lender, who then handles the loan approval and disbursement.