What is a mortgage broker?

A mortgage broker is defined as a professional who assists borrowers in finding and negotiating mortgage loans. This role involves connecting potential home buyers or refinancing homeowners with a variety of lenders, allowing them to explore different loan products, interest rates, and terms that best fit their financial needs and goals. Mortgage brokers have access to a range of mortgage products from various lenders, which enables them to offer a wider selection of options than a borrower might find through a single lender.

They often play a crucial role in guiding clients through the mortgage process, helping them understand their options and the implications of different loans. In contrast, other roles such as lenders provide direct loans to borrowers, while investors focus on acquiring real estate properties, and financial advisors who specialize in stocks do not typically engage in mortgage transactions. Understanding this distinction is essential for recognizing the function and value of mortgage brokers in real estate financing.