Who is a Mortgage Broker?

A mortgage broker is a person who manages and arranges the process of obtaining a mortgage between a the person who is willing to loan and a borrower who needs a loan to make a purchase on a house. These brokers don’t have a say in the actual transfer and approvals of the mortgage, they just act as a middle man earning commissions.

For example you want to buy a house and in a need of a mortgage and you don’t have the time to go through the usual hassle which is usually associated with obtaining a mortgage, so you hire a mortgage broker who gets it done for you. Important to remember that getting the actual mortgage or not doesn’t depend on the mortgage broker it self. After handling the paper work the mortgage broker collects his commission.

This way everybody’s satisfied, you because you have received the mortgage and you can buy the house now and didn’t waste any time getting it, the mortgage banker because he managed to lend the money. Note you shouldn’t confuse the mortgage broker with the mortgage banker, the banker makes the actual decision of approving or not the loan in question.