What is a loan broker's main function?

A loan broker primarily functions to facilitate the process of securing loans for clients by soliciting, processing, negotiating, or selling these loans for compensation. This role is crucial in helping borrowers find suitable financing options that meet their needs while also earning a commission from lenders for bringing in business.

The duties of a loan broker involve gathering financial information from borrowers, assessing their creditworthiness, and comparing various loan products across different lending institutions to ensure the borrower receives the best terms available. By acting as an intermediary, the loan broker streamlines the loan application process and provides valuable insights into the lending landscape.

Understanding this role emphasizes the importance of brokers in the lending ecosystem, connecting borrowers with lenders and ensuring that both parties achieve their goals. The other options, while related to financial activities, do not accurately represent the core function of a loan broker.