It’s time to make your first substantial purchase and buy a home for you and your family. Such a significant purchase warrants soliciting the help of a mortgage broker. But what exactly does a mortgage broker do? In this article we’ll unpack the ins and outs of the mortgage broker’s responsibilities and illuminate you on how they’ll help you secure a loan that suits your needs.
Mortgage Broker Defined
A mortgage broker acts as the middleman between the borrower and mortgage lenders. Instead of combing through the myriad of mortgage loans out there, a mortgage broker will do that for you. They will wade through the muck of mortgages to find a lender that will offer you a loan with quality rates.
Brokers are licensed and regulated professionals. They gather the necessary information -everything from income to employment verification documents- in order to research and apply to loans that work for you.
Who Pays Them?
Almost always, mortgage brokers will get paid by the lender. Lenders may pay borrowers anywhere between .50% and 2.75% of the loan amount. Borrowers also have the option of paying the lender what’s called a “borrower-paid compensation.”
Differences Between Mortgage Brokers & Loan Officers
Mortgage lenders staff loan officers and are paid salaries. Mortgage brokers on the other hand work within a mortgage brokerage or may work independently. They deal with a plethora of lenders and earn most of their money through lender-paid fees.
Which One Should I Choose?
This is entirely your choice. A mortgage broker’s job is to work on the behalf of the borrower. They tirelessly look for loans that offer competitive rates. The benefit of working with a broker is that they’ll do all the heavy lifting for you. All you’ll have to do is supply him or her with pertinent documents and give the go-ahead once an acceptable loan has been found. Applying for loans without the help of a broker can drain you of your free time. During the application process you’ll have to be in constant communication with the lenders. A broker can save you time and money when they apply their vast experience.
Keep in mind that when settling on a lender you’ll want to take note of the lender fees. On your own time you’ll want to compare the loans costs associated with each loan. Taking the time to juxtapose lender fees will make a significant financial difference down the road.
Choosing The Right Broker
Scan the web for mortgage broker reviews. Learn about what makes a good mortgage broker and interview the broker in question or past clients to determine whether the broker on the hot seat is qualified or not. Finding the right mortgage broker is just as important as selecting the right mortgage lender.
To further your mortgage broker education, talk to the home lender at Affiliated Mortgage. Their staff will help you find the best North Dakota mortgage rates in the state.
It’s time to make your first substantial purchase and buy a home for you and your family. Such a significant purchase warrants soliciting the help of a mortgage broker. But what exactly does a mortgage broker do? In this article we’ll unpack the ins and outs of the mortgage broker’s responsibilities and illuminate you on how they’ll help you secure a loan that suits your needs.
Mortgage Broker Defined
A mortgage broker acts as the middleman between the borrower and mortgage lenders. Instead of combing through the myriad of mortgage loans out there, a mortgage broker will do that for you. They will wade through the muck of mortgages to find a lender that will offer you a loan with quality rates.
Brokers are licensed and regulated professionals. They gather the necessary information -everything from income to employment verification documents- in order to research and apply to loans that work for you.
Who Pays Them?
Almost always, mortgage brokers will get paid by the lender. Lenders may pay borrowers anywhere between .50% and 2.75% of the loan amount. Borrowers also have the option of paying the lender what’s called a “borrower-paid compensation.”
Differences Between Mortgage Brokers & Loan Officers
Mortgage lenders staff loan officers and are paid salaries. Mortgage brokers on the other hand work within a mortgage brokerage or may work independently. They deal with a plethora of lenders and earn most of their money through lender-paid fees.
Which One Should I Choose?
This is entirely your choice. A mortgage broker’s job is to work on the behalf of the borrower. They tirelessly look for loans that offer competitive rates. The benefit of working with a broker is that they’ll do all the heavy lifting for you. All you’ll have to do is supply him or her with pertinent documents and give the go-ahead once an acceptable loan has been found. Applying for loans without the help of a broker can drain you of your free time. During the application process you’ll have to be in constant communication with the lenders. A broker can save you time and money when they apply their vast experience.
Keep in mind that when settling on a lender you’ll want to take note of the lender fees. On your own time you’ll want to compare the loans costs associated with each loan. Taking the time to juxtapose lender fees will make a significant financial difference down the road.
Choosing The Right Broker
Scan the web for mortgage broker reviews. Learn about what makes a good mortgage broker and interview the broker in question or past clients to determine whether the broker on the hot seat is qualified or not. Finding the right mortgage broker is just as important as selecting the right mortgage lender.
To further your mortgage broker education, talk to the home lender at Affiliated Mortgage. Their staff will help you find the best North Dakota mortgage rates in the state.
A Little About Affiliated Mortgage
A Little About Affiliated Mortgage
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