What Is Mortgage Broker?
Mortgage Broker: A licensed professional who arranges your loan with one of many lenders rather than lending directly.
A mortgage broker is a licensed company or individual who takes your application and arranges the loan with a lender, rather than lending its own money. Brokers work with many wholesale lenders, so they can compare programs and pricing for you.
How brokers are paid
Either the lender pays the broker (lender-paid compensation) or you do (borrower-paid). Federal rules prevent brokers from being paid based on your rate or loan terms, and from being paid by both sides on the same loan.
Benefits
- One application compared across many lenders
- Access to programs a single bank doesn't offer
- Wholesale pricing
Licensing
Mortgage brokers and loan originators must be licensed through the Nationwide Multistate Licensing System (NMLS). You can look up any license on NMLS Consumer Access.
Good to know
Unbeatable Loans is a licensed mortgage broker (NMLS #1827883) and arranges loans with third-party lenders.