What is a Mortgage Broker

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What is a Mortgage Broker?

A mortgage broker is a third party that facilitates (or brokers) a mortgage between a borrower and a mortgage lender.

Unlike a bank or credit union, the mortgage broker originates but does not fund the mortgage loan.

However, brokers do more than just find lenders. They also act as a liaison between the borrower and the lender, and walk the borrower through legal disclosures and gather relevant documentation, such as financial records. Mortgage brokers are paid a fee by the borrower or the lender when the loan closes.

Of course, a loan officer at a bank or credit union can do these things too, but the difference is that they can only get a loan from their own institution.

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