Mortgage Broker
Direct definition
A licensed intermediary who shops your loan across multiple wholesale lenders to find terms that fit.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Brokers don't fund loans themselves. They collect your application and shop it to wholesale lenders whose rates and guidelines they know well.
Why it matters
A broker's access to many lenders often surfaces programs and pricing a single retail bank can't offer.
Where you may see it
- Loan application
- Rate quotes
- Loan Estimate
- Compensation disclosure
A real-world example
A broker submits your file to three lenders and returns three loan estimates — you pick the best combination of rate, fees, and program fit.
Educational and illustrative only
A common misunderstanding
A broker isn't a lender and doesn't fund your loan directly. Their compensation doesn't automatically mean you get a worse rate than going direct to a bank.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026