Who acts as a middleman between borrowers and lenders?

A mortgage broker serves as a middleman between borrowers and lenders by facilitating the loan process. The primary role of a mortgage broker is to connect individuals seeking to finance a home with various lending institutions that offer the most appropriate loan products. They assess the needs of the borrower, gather necessary documentation, and present the borrower's case to lenders to secure the best possible terms.

By working with multiple lenders, a mortgage broker can provide borrowers with a range of options, allowing them to compare interest rates, fees, and loan types. This not only streamlines the borrowing process but also enhances the chances of finding a lender that can effectively meet the specific financial needs of the borrower.

In contrast, a mortgage officer typically works directly for a financial institution, processing loans for that particular lender without the broader perspective offered by a broker. A real estate agent specializes in assisting clients with buying and selling properties rather than financing, and a loan underwriter evaluates the risk of lending money to a borrower based on their creditworthiness and the property's value. Each of these roles has distinct functions in the real estate transaction process, but the mortgage broker specifically fills the niche of linking borrowers with lenders efficiently, making them the correct choice.