Mortgage broker
A licensed intermediary who shops loans across multiple lenders on the borrower's behalf. Gets paid by the lender, the borrower, or both. Different from a loan officer at a single bank.
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See how it worksWhere this comes up: under contract
Part 1 of 4
Why a seller cares
A buyer whose preapproval comes from a broker may end up with a lender neither of you has heard of. It is common and fine; the question for a seller is the same as always: is the loan on track.
Part 2 of 4
A simple example
The buyer's preapproval is from a mortgage broker. The actual lender turns out to be a wholesale lender in another state, and the loan closes in 28 days.
| Who the buyer used | What it means |
|---|---|
| A mortgage broker | The loan is shopped to several lenders; the broker is the point of contact |
| A bank's loan officer | One lender, one set of rules |
| Either | Same appraisal, same contingency, same closing |
A broker finds the loan; a lender makes it. The buyer's contact is whoever they started with.
Part 3 of 4
What people get wrong
That a broker's preapproval is weaker than a bank's. It depends on the work behind it, not the letterhead.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines mortgage broker in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.