A mortgage broker works as a go-between for people seeking a home loan and potential lenders. The broker typically has a list of lenders and their respective offerings and requirements; they then work with loan seekers to match them with the lender that best suits their needs. Mortgage brokers are typically paid a commission by the person signing the mortgage and a fee by the lending bank. Throughout the mortgage process, the broker helps facilitate communication between the bank and the borrower and works to ensure an expedient decision and signing process.
The broker typically gathers information from the prospective homeowner related to income, expectations and affordable payment parameters. The broker also researches the borrower's credit history and may provide some guidance for upgrading a credit score prior to presenting the loan application to a lender. A mortgage broker then works to find the best match for the borrower's needs from the available portfolio of lenders and mortgage programs available in the area. Once potential matches have been found by the broker, he or she helps the prospective borrower gather all necessary documentation for submission to the lender, and they typically act as a stand-in to represent the loan-seeker throughout the process. The broker typically keeps a regular stream of communication with the borrower until the loan is closed.
Mortgage brokers typically are required to be certified and licensed to work in this field by their local jurisdiction. Many employers who hire mortgage brokers seek out individuals with a bachelor's or associate's degree as well. Mortgage brokers typically work during regular business hours in an office environment, but they may need to be available for off-hours phone calls and emails with borrowers who have contracted their services.
Mortgage Broker Tasks
Assess local mortgage market to find deals for client.
Apply for loans on behalf of borrower and collect documentation to pre-approve client.
Mediate between the prospective homebuyer and the lending institution to underwrite and structure financial solutions.
Interview and document credit, income, and financial history of clients.
Deploy marketing and sales strategies to attract new clients.