A licensed mortgage broker has a specific and essential job to do. Their job is to effectively shop around the real estate financing market to find the buyer the best mortgage rate, at the best terms possible.

Usually a broker comes in before the home buyer actually goes looking for their dream home. Buyers should first go to a broker for a mortgage pre-approval. Most (if not all) financial lenders offer a mortgage pre-approval, and this document is normally free for prospective home buyers. This mortgage pre-approval is crucial to the home buyer as it tells them what they can actually afford and details the limits to which they can borrow from the financial institution.

A mortgage broker is of added value in this situation as in the time it takes a home buyer to meet with one particular lending institution, the mortgage broker can contact a number of quality banks on the buyers