Brokers

Mortgage brokers are independent agents who find and qualify borrowers, and match those borrowers to lenders that they feel suit the borrowers’ needs. They do not lend, but rather serve as the go-between to offer the loan products of multiple lenders.  Along with originating the loans, the mortgage broker processes and closes them as well, working with, and passing it along to, the lender who has funded the loan.  This lender afterward bundles the loan with other mortgages and sells them to an investor.

Mortgage brokers have the advantage of being able to deal

with multiple lenders, allowing them to shop for the best loan available from a very wide selection. In some cases then, especially where the credit is less than perfect and/or

nonconforming properties are involved, a mortgage broker

can find funding where others can’t.

They may charge a fee, and may also price the loan so that

they will receive a premium from the lender.  However, while the term "broker" bears a negative connotation because it implies a middleman's fees, brokers are often just as competitive as a lender or a bank.  It's best not to assume

anything but, as always, to shop one or more brokers

alongside banks and lenders to find your best product and

price. 

Lender, Broker, Or Bank?  |  Lender |  Bank