Mortgage Broker - 5 things
A mortgage broker applies for loans with different lenders to find the most competitive interest rate, negotiating the terms of the loan on your behalf.
If you’re here, you have probably short listed the homes you’d like to purchase and need to finalize everything with a mortgage. A mortgage broker can help you through this process from start to finish.
1. What is a mortgage broker?
The role of a mortgage broker is to act as the middleman between the home buyer and potential lenders. He or she works with you to find lenders that match your financial criteria and needs. They generally come with existing relationships with many banks and lenders, making the process easier for you to ensure you get your mortgage.
Not everyone can be a mortgage broker given that it’s a licensed profession. Part of the process includes document gathering, credit report pulling and verifying your income and employment. These brokers then use the gathered information to apply for loans with many lenders.
Mortgage brokers are licensed financial professionals. They gather documents, pull your credit history, verify income and apply for loans on your behalf.
After finalizing on a specific lender and mortgage product, the mortgage broker works with bank or lenders underwriters, closing agent and the real estate agent to make sure everything moves as smoothly as possible.
2. Who pays the mortgage broker?
Generally, the bank or lender pays the mortgage broker. If the home buyer has a specific financial situation that makes acquiring a traditional mortgage a bit more difficult, some home buyers pay the mortgage broker as they do extra legwork to ensure they get their desired home.
3. What makes mortgage brokers different from loan officers?
Loan officers represent the bank or other lenders while mortgage brokers are independent. While brokers can shop the market for many lenders and thousands of mortgage products, loan officers of banks often can only get you a specific rate and product.
4. Should I go with a mortgage broker?
For most people, it’s in their best interest to work with a mortgage broker. On a single credit check, mortgage brokers can shop the market to ensure you get the best rate.
If you have a specific financial context where, for example, you are self employed or receiving child-care income, a mortgage broker would be able to help you in the case where most bank loan officers cannot.
5. Where can I find a mortgage broker and how do I choose one?
Friends and family are often a reliable source. They provide trustworthy recommendations from their first-hand experience.
Realtors work with mortgage brokers to ensure their homebuyers know how much they can afford, thus optimizing the realtors time knowing which homes to show their clients.
There are many digital / online options in the market. Breezeful is a mortgage broker platform that would help all customers, including those with specific financial needs and matching them with a lender that ensures the best mortgage rate.