Due to agents having relationships with multiple lenders, brokers can scan through a number of the mortgage products offered by the lenders to find customers the rate that suits their financial situation.
Brokers provide their service free of charge to customers and earn a finders fee from lenders for bringing them new business.
Mortgage specialists are employed by commercial banks such as bank of America who work with customers to select from a bank’s mortgage offerings. They process mortgage applications and guide customers through the process.
Unlike mortgage specialist at banks who only promote their mortgage products, mortgage brokers act as middlemen between you and the lenders, negotiating the best mortgage on your behalf. Their independence and relationships with many lenders let agents work in an unbiased fashion.
A mortgage broker is a licensed professional that can help you find a mortgage that suits your financial situation. Brokers work with a variety of lenders to find loans for clients, but do not lend out money directly. The lender could be a mortgage bank, which specializes in mortgages; it could be a large commercial bank, a community bank or a credit union.