The broker simplifies this process for the borrower and wholesale lender, by conducting this research, counseling consumers on their loan package choices, and enabling them to select the right loan for their home buying needs. The mortgage loan process can be arduous, costly, and seemingly impossible to the consumer. The broker works as the liaison between the borrower and the lender to create a cost effective and efficient loan process. Many low-income borrowers with less than perfect credit histories would not have been able to purchase their dream home without the assistance and dedication of a mortgage broker. As an independent contractor, the broker allows wholesaler lenders to cut origination costs by providing such services as preparing the borrower' s loan package, loan application, funding process, and counseling the borrower.
Brokers help keep loan rates low due to their minimal overhead and setup costs.
Furthermore, the broker will seek the loan which best suits the borrower's financial circumstances, needs, and goals. From the consumer perspective, with rare exception, the broker does not get paid unless and until the loan closes. Thus, the broker has the ultimate incentive to provide the best possible customer service to the consumer. Since mortgage brokers offer the products of many wholesale lenders they often have the best selection. Today over half the nation's mortgages are originated by mortgage brokers.