What role do mortgage brokers typically fulfill?

Mortgage brokers primarily serve as intermediaries between borrowers seeking loans and lenders willing to provide funding. They facilitate the loan process by connecting clients with various lending options, helping borrowers find the best loan terms and interest rates that fit their financial needs. By leveraging relationships with multiple lenders, mortgage brokers can offer a broader array of choices compared to traditional banking institutions, ensuring a more personalized fit for the borrower's situation.

The role of providing funding for mortgage loans typically comes from financial institutions or lenders, not from the brokers themselves. While mortgage brokers may assist in the originating process, they do not usually service loans or underwrite them; those functions are generally handled by lenders. Understanding the distinction between these roles is crucial for comprehending how the mortgage industry operates and how borrowers can effectively navigate it.