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.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.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
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