What is a Mortgage Broker?
A mortgage broker acts as a middle man bringing mortgage borrowers and lenders together
There are a lot of people involved in the sale of a house. There are lending institutions, lawyers, real estate agents, and buyers. There is sometimes a mortgage broker involved as well.
There is often some mystery surrounding mortgage brokers and many people may wonder what exactly it is that they do. Using a mortgage broker is an important step in the process that many homebuyers often overlook because they have limited information. Mortgage Brokers have access to hundreds of deals from the whole of the market which could take the borrower ages to go through one by one, especially if you have unusual circumstances.
The Job of a Mortgage Broker
A mortgage broker acts as a middle man bringing mortgage borrowers and lenders together. It is important to note that mortgage brokers do not lend money or put forward their own funds in any way to help you get a mortgage.
What a mortgage broker does is connect you with the lender that is right for your needs and circumstances. The mortgage brokers do this by finding out more about your personal and financial situation. Your relationship with a broker is a personal yet professional one.
Your broker will use the knowledge they have gained from getting to know you better to not only get you a loan but get the best variation of that loan for your needs. This means that you will get the best interest rate possible on your loan or a loan that best fits your current circumstances.
Handling of Paperwork
A mortgage broker helps to put the application for the loan together and explain to the lender your individual circumstances so the lender understands your Circumstances. This is an
extremely important step because delays can occur if the lender does not understand your situation and has to keep asking for more information about you. The broker will chase the
lender for updates and keep you in the loop. The mortgage lender will then underwrite and approve the loan.
Mortgage brokers also play a key role in ensuring that the buyer gets proper mortgage protection. This is necessary because there are times when hardships may arise and the mortgage cannot be paid on time. A mortgage broker ensures that you get the best mortgage protection for you and your family as possible.
How Do Mortgage Brokers Get Paid?
Mortgage brokers get paid when the deal is closed. They earn a commission from the lender or a Broker fee from the borrower. Sometimes, a mortgage broker will get both.
The mortgage broker doesn’t get a large commission on the loan. They typically get less than one percent of the loan itself. This is really not a lot and it is one of the reasons why anyone who is seeking to purchase a house should employ a mortgage broker.
The loan process is guaranteed to go a lot more smoothly especially when it comes to filing paperwork and getting the best benefits possible.
Harness the Benefits
The benefits of hiring a mortgage broker are many and they provide an invaluable service to both the borrower and the lender. Lenders have the advantage of getting new customers
through a broker and the borrower will get connected to the best lender for their needs.
Needless to say, mortgage brokers are an essential component in real estate transactions and are an important part of closing a sale.