A mortgage broker is a licensed professional who helps borrowers find and obtain mortgage loans. Mortgage brokers work as intermediaries between borrowers and lenders, and they typically have access to a variety of lenders and loan products. Mortgage brokers can help borrowers navigate the mortgage process, compare loan options and interest rates, and assist with the loan application and closing process.
Mortgage brokers earn a commission on the loans they arrange, which is typically a percentage of the loan amount. This commission is paid by the lender, not the borrower, and it is typically included in the interest rate or closing costs for the loan.
Working with a mortgage broker can be beneficial for borrowers because brokers can help them save time and effort by doing the legwork of shopping for loans and negotiating with lenders on their behalf. Additionally, mortgage brokers may be able to find loan products that borrowers might not be able to access on their own.
However, it’s important to do your research and choose a reputable mortgage broker who has your best interests in mind. Look for a broker who is licensed and has a good reputation, and be sure to ask about their commission structure and any potential conflicts of interest.