Mortgage Broker.
In plain English
A mortgage broker is an intermediary between you and mortgage lenders. Instead of applying to banks one by one, you give the broker your information and they shop it to several lenders, aiming to find a competitive rate and terms. Brokers are paid through fees, sometimes by you and sometimes by the lender, which can create a conflict if a higher-cost loan pays them more. A good broker saves you time and can find deals you would not; the key is understanding how yours is paid.
01Why it matters
A broker can save you legwork and money, but because their pay can depend on the loan they steer you into, knowing how yours is compensated protects you.
02The math, step by step
Rather than apply to five banks yourself, you give a mortgage broker one application. They return three offers, and you pick the lowest-cost one after checking how the broker is paid.
03What this is NOT
A mortgage broker is NOT a lender's loan officer. A loan officer works for one bank and sells its loans; a broker is independent and shops your application across many lenders.