Texas Real Estate State Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Texas Real Estate State Exam with comprehensive study materials. Engage in multiple choice questions and gain insights with in-depth explanations and examples. Ace your exam confidently!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which party acts as an intermediary between the borrower and lender?

Mortgage banker
Seller
Escrow officer
Mortgage broker

The correct answer is: Mortgage broker

The correct party that acts as an intermediary between the borrower and the lender is the mortgage broker. A mortgage broker facilitates the loan process by connecting borrowers with lenders, helping them find the best loan options based on their financial needs and circumstances. The broker gathers necessary information from the borrower, such as income, credit history, and debt levels, and then presents this information to various lenders. Thus, they play a crucial role in the mortgage process by streamlining communication and ensuring that both parties' needs are met. While a mortgage banker originates loans directly and operates as a lender, the escrow officer manages the closing process, and the seller isn't involved in the financing aspect of mortgage transactions, it is the mortgage broker who specifically specializes in navigating the landscape of available loan products and lenders on behalf of the borrower. This unique position makes the mortgage broker essential in connecting those seeking financing with the lending institutions.