Often, most people think of a Mortgage Broker as a lender. But in reality he is a link between the lender and the borrower; offering loans from different lenders to the borrowers. He could be an individual or a firm.

A Mortgage Broker does not loan money to borrowers instead would help them in finding the perfect lender for their mortgage. So he needs to understand the psychographs of the borrower and of the lenders in order to look for a perfect match. Once the lender is finalized it is the job of the Mortgage Broker to crack the deal with the lender in the lowest possible interest rates. In addition, broker gathers all information from the borrower like his credit report, employment proof, asset disclosures and property appraisals. When this file of applications is ready the broker passes it on to the lender who in turn would pass the loan and give the loan money to the borrower.

As the Mortgage Broker has more than a hundred lenders on his list it is easy for him to look out for the perfect match. This gives him the power to counsel the borrower in choosing the lender and in getting better interest rates for their loan. The Mortgage Broker is only responsible for the transaction until the money is transferred from the lender to the borrower. Once the transaction is made then the lender is responsible for everything that is related to the loan money. 
Another common misconception among people is to regard a bank loan officer and a Mortgage Broker to be the same.

The bank loan officer works for one only lender though he offers the borrower different types of loans suiting different situations. Whereas a broker has several hundred lenders who he chooses from when a client’s credit needs are discussed. A broker can find a lender for a deal which has been rejected by the banks. The loans for commercial properties are easy to pass through a mortgage broker than a bank. The mortgage market is so huge that you can yourself research the lenders who match your credit needs or you could hire a broker. Either ways due to the overwhelming numbers of lenders the loan gets passed very soon which saves the precious time of the borrower.

The broker would help you find a lender but would not charge you as they live on the commission the lender offers for every deal he brings to them. And this commission does not increase the interest rates charged by the lender. It remains the same.

With all these positive remarks hiring a mortgage broker also has it’s own downsides. It is possible that some of the brokers instead of introducing the best lender according to your credit requirements would promote someone who pays him more commission.

There are highly untrained brokers in the market who might fake about their training and qualification. 
When a borrower deals with a broker it is more of a personal matter than unlike the transactions made with banks. This local-ness could get you to suffer a few losses if you are not careful enough.