A mortgage broker is a person who provides loans by acting as a go-between to both the borrower and the lender. The mortgage broker will offer the different loan products of various lending institutions. Mortgage brokers can either be connected to a firm or work independently.
It should be made clear that a mortgage broker does not lend people money. His function is to work with the borrowers by giving them assistance in finding the right mortgage loans that will perfectly address the borrowers’ needs and requirements.
A mortgage broker will usually find out the needs of the borrower. Upon finding out his requirements and needs he will then look around for the best loan that lenders can offer the borrower. The mortgage broker will usually work with many lenders in order to give his clients a bigger list of options to choose from. A bigger pool of lenders also gives the mortgage broker the ability to address the needs of borrowers with specialized requirements.
The mortgage broker will also accept the applications of borrowers and use it to get firm offers of lending rates and terms from lenders. He will also facilitate working on the required state and federal disclosures needed for the loan. Borrowers won’t even need to worry about sourcing the required documents for the loan because the mortgage broker will also work on getting it. Upon getting all of the requirements for the loan, it is also the mortgage broker who will file the application to the chosen lender.