Should I Work With a Mortgage Broker?

A mortgage broker, unlike a mortgage lender, does not fund loans but instead helps you find the right lender for your financial situation. Mortgage brokers are licensed and regulated financial professionals who act as a bridge between borrower and lender.

A broker can have access to a variety of lenders, which may give you a bigger selection of products and terms than a direct lender. Working with a broker doesn't guarantee that you're getting the best deal, though, and you will still need to compare the terms and conditions of loan offers.

Brokers can originate loans and manage the approval process, which can save you time, but they do not close mortgages themselves.

After you choose an ideal lender, your broker will help you compile your paperwork, send it to an underwriter and order a home appraisal. Once you are cleared to close, the mortgage broker will start to prepare for closing day.