What Is a Mortgage Broker?

Mortgage brokers are independent agents who find mortgage loans and lenders for their clients.They use their knowledge of market trends, rates and mortgage loan options to match borrowers with a lender and mortgage loan.

Paying Brokers

Clients engage a mortgage broker and agree to pay a commission for his services. The commission is paid at closing, and it is usually a percentage of the loan amount; one percent of the loan amount is called a "point."

Industry Insiders

Mortgage brokers maintain relationships with a network of mortgage lenders, and they match their clients' needs to appropriate mortgage loans and lenders.

More Mortgage Choices

A mortgage broker provides clients with a broad choice of mortgage options and lenders. This is useful for matching mortgage loans to specific client needs.

Credit Problems

Borrowers facing credit problems can get help from mortgage brokers. Brokers know how to find loans for credit-challenged borrowers. Some may even be able to pull some strings to get approval from a company that would otherwise deny the client.

Mortgage Help

Buying a home and getting a mortgage can be complex and challenging. A mortgage broker can guide you through the process, answer questions and provide advice about choosing a mortgage loan.

In Writing

Before hiring a mortgage broker, she should provide a written statement of fees and services provided. This can help prevent misunderstandings during the mortgage application, approval and closing processes.