Mortgage broker
A licensed go-between who shops your loan to several wholesale lenders instead of lending its own money. The broker is paid by the borrower or the lender, and that pay shows on the Loan Estimate.
Also called: loan broker, wholesale broker
Related terms
The bank, credit union or mortgage company that provides the loan money. The lender sets the rate and terms, underwrites the loan and holds or sells it after closing.
The person who helps you choose a loan, takes your application and guides it to closing. Loan officers must be licensed or registered through the NMLS.
A standard three-page form a lender must give within three business days of a loan application, showing the estimated rate, payment and closing costs. It makes offers from different lenders easy to compare.
A fee the lender charges to process and fund a loan, often a percentage of the loan amount. It appears on the Loan Estimate and is included in the APR.
The percentage a lender charges to borrow money, used to figure the interest part of each payment. It does not include fees, which is why the APR is often higher.