A mortgage broker is a professional who acts as a middleman between buyers and lenders, helping homebuyers find the best mortgage for their particular needs and situation. They work with a network of lenders, including commercial banks, credit unions, mortgage companies, and other financial institutions, to identify the best loan options for homebuyers. Mortgage brokers can work independently or with a brokerage firm.

Mortgage brokers help homebuyers with special circumstances find a loan to meet their unique needs. They also help all kinds of borrowers get the best loan by gathering documents from them, pulling their credit history, verifying their income and expenses, and coordinating all of the loan paperwork. Many brokers have access to a powerful loan-pricing system, which prices a mortgage loan across many lenders at once, thereby streamlining the process.

Mortgage brokers are licensed and regulated financial professionals who do a lot of the legwork. They work with everyone involved in the lending process, from the real estate agent to the underwriter and closing agent, to make sure a borrower gets the best loan and the loan closes on time. Once a borrower settles on a loan and a lender that works best for them, the mortgage broker will collaborate with the bank’s underwriting department, the closing agent (usually the title company), and the real estate agent to keep the transaction running smoothly through closing day.

Mortgage brokers are paid by lenders, sometimes by borrowers, but never both. They earn a commission from either the borrower, the lender, or both at closing. Mortgage brokers are most often paid by lenders. The Dodd-Frank Act prohibits mortgage brokers from charging hidden fees or basing their compensation on a borrower’s interest rate. Borrowers can also choose to pay the mortgage broker themselves, which is called "borrower-paid compensation".

In summary, a mortgage broker helps homebuyers find the best mortgage for their particular needs and situation by working with a network of lenders, gathering documents, verifying income and expenses, and coordinating all of the loan paperwork. They are licensed and regulated financial professionals who work with everyone involved in the lending process to make sure a borrower gets the best loan and the loan closes on time. Mortgage brokers are paid by lenders, sometimes by borrowers, but never both.