Today, I personally took out the time to write this article about mortgage brokers. I been hearing the word for quite some time now and assumed I know the meaning. I sat down and asked myself what he meaning really is. Then I realized I just had the imagination of what it is. This brought me to my research where I fully understood what a mortgage broker is. I decided to share my research about brokers with you all so you can get the knowledge I already have.
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What or who is a mortgage broker? A mortgage broker is simply someone who acts as an intermediary. What they do is that they mortgage loans on behalf of other business or individuals. These individuals or businesses are their clients. Mortgage brokers earn from commissions that are paid to them from the lender. In a more traditional world, banks and other lending companies have sold their own products. Since mortgage markets have become more competitive, the role of mortgage brokers has become more popular. In a lot of developed markets today, mortgage brokers are the largest sellers of mortgage products. You have to get this straight, they do not offer the service, and they only find the best mortgage product for you.
Existence of Mortgage Brokers
Some of these developed countries include Canada, the United States, Australia, New Zealand, the United Kingdom, and Spain. Mortgage brokers exist only to find a lender that offers a specific loan that an individual or business is looking for. Mortgage brokers in Canada do not charge fees for good credit applications; they are paid fully by the lender.
How a Mortgage Broker Works
Like I said before, a mortgage broker serves as a middleman between the borrower and the lender. I am sure that you know what a mortgage is. If you don’t, a mortgage is a type of loan that always involves collateral. A mortgage broker can always help you if you are a potential borrower, buying a new home or even refinancing.
Loan officers are similar to mortgage brokers in some ways but do not be confused. A mortgage broker works for different institutions while a loan officer works for just one application. Why go for the option of one institution while you can get tons of offers. While loan officers can offer you a handful of services, brokers can offer you a lot more.
There are certain duties that a broker has. The work that is taken by a broker would depend on the service and liabilities of the broker. Here are some of the tasks of a mortgage broker.
- Marketing to attract clients.
- Assessment of the borrower’s information. Thee information may include the credit history.
- Searching the market to find a mortgage product that would satisfy the client’s needs.
- Pre-approval for a lenders agreement.
- Getting all the documents needed for the mortgage.
- Completing the lender application form.
- Explaining legal disclosures to both parties.
- Submitting all required materials to the lender.
They also uphold their duty by finding you the best possible delta and saving you as much money as possible.