An individual who arranges financing or negotiates a contract on a client’s behalf and earns a commission for doing so.
A broker is an individual who arranges financing or negotiates a contract on a client’s behalf and earns a commission for doing so.
Real estate brokers help home buyers find property, negotiate purchase prices and write up the contracts. Mortgage brokers help borrowers find home loans. Mortgage brokers do not actually loan money; they facilitate a transaction by taking a loan application, processing the supporting documents and locating the best loan for the client.
The difference between mortgage bankers and brokers is that the bankers sell and fund only their company’s loans, while brokers may work with many wholesale lenders. Brokers function as the sales force for wholesale lenders, while mortgage bankers are employed directly by retail lenders.