Definition: Loan Broker
A loan broker is not a lender. He is really more of a marketer (he has to advertise to find people to do loans for), and is also someone who studies the current offerings from several different lenders and helps to guide a borrower to a lender that has a loan program that will work well for the borrower.

A loan broker will often charge a fee for his services that is called an "origination fee". This simply means that he is charging you for the money he spent advertising to get you in the door, for his time spent with you, and for his office staff's time spent dealing with your paperwork.

While all loan brokers are required to tell you that they are loan brokers and not direct lenders, they are not required to make sure you understand the tradeoff's involved. That's where we come in!
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