A licensed intermediary who shops multiple lenders on your behalf to find the best loan terms — brokers don't lend money themselves.
Full Definition
A mortgage broker is a licensed professional who acts as a middleman between borrowers and lenders. Brokers have access to wholesale loan products from multiple lenders that aren't available to consumers directly. They take your loan application, gather documents, and submit your file to one or more lenders on your behalf. Brokers are paid a commission (typically 1–2.75% of the loan amount), disclosed on the Loan Estimate. The benefit of a broker is access to multiple wholesale lenders, which may produce better rates or terms than going to a single bank or direct lender. All mortgage brokers must hold an NMLS license in the states where they originate. Brokers vs. lenders: lenders use their own money; brokers find the money from someone else.
Related Terms
Whether you're buying a home or building a mortgage career, Lend Loft has the tools, training, and licensed support to get you there.