What is the primary purpose of a mortgage broker?

The primary purpose of a mortgage broker is to act as an intermediary between borrowers and lenders. This role is crucial in the mortgage process as brokers help borrowers find suitable loan options that fit their financial needs and goals. They utilize their knowledge of various lending products and market conditions to connect borrowers with lenders who offer the best terms and rates for their specific situations.

Mortgage brokers facilitate communication and negotiation between the two parties, guiding borrowers through the application process and helping them understand the terms of the loans. They also provide valuable market insights and support throughout the mortgage transaction, ensuring that borrowers are well-informed and can make educated decisions.

In contrast, providing direct loans to borrowers is typically the function of lenders. Evaluating loan applications is a task handled by underwriters who assess the creditworthiness of a borrower for approval. Setting interest rates is determined by lenders based on various factors, including the market and borrower qualifications, rather than the broker's role.