The Definition of Mortgage Broker

An intermediary who sells mortgage loan on behalf of individuals or businesses can be called as mortgage broker. Generally, banks and other lending institutions have sold their own products. But as markets for mortgages have become more competitive, the role of the mortgage broker has become more popular. In the present in most developed mortgage markets (especially in Canada, the U.S, the UK, Australia, New Zealand and Spain) mortgage broker is the largest sellers of mortgage products for lenders.

Usually, the mortgage broker jobs including marketing to attract clients, assessment of the borrowers circumstances (this may include assessment of credit history (normally obtained via a credit report) and affordability), assessing the market to find a mortgage product that fits the clients needs, applying for a lenders agreement in principle (pre-approval), gathering all needed documents, completing a lender application form, explaining the legal disclosures, and last but not least is submitting all material to the lender.

What is the different between mortgage broker and loan officer? The different is mortgage broker works as a conduit between the buyer and the lender. Generally, they will make more money per loan than a loan officer, but a loan officer can utilize the referral network available from the lending institution to sell more loans.