What is the primary role of a mortgage broker?

The primary role of a mortgage broker is to act as an intermediary between borrowers and lenders, effectively arranging loans for individuals seeking financing for real estate purchases. This involves identifying the needs of borrowers and connecting them with appropriate loan options from various lenders, including banks and financial institutions. Mortgage brokers have access to a range of loan products, allowing them to shop around for the best rates and terms suited to their clients' financial situations.

In addition to facilitating these connections, mortgage brokers assist clients throughout the application process by helping to gather necessary documentation, explaining loan terms, and guiding borrowers until the loan closes. This role is critical, as it helps simplify the process for borrowers and ensures they find financing that aligns with their requirements.

The other options do not capture the essence of a mortgage broker's role. Direct lending, managing a bank's mortgage department, or purchasing and holding mortgages suggest different responsibilities that are not aligned with the core function of sourcing and arranging loans for clients.