What Do Mortgage Brokers Do?
Mortgage brokers are licensed and regulated financial professionals who act as the bridge between borrowers and lenders. They originate loans and help you connect with a variety of lenders who best fit your financial situation and rate requirements.
Whether you're purchasing or refinancing a residential property, brokers gather loan options in addition to necessary paperwork, like income and bank statements, credit reports and employment history, to give a file to lenders to secure a home loan, as well as help your transaction close properly and on time.
Unlike a mortgage banker, who only offers one bank's products and uses the bank's funds to originate loans, a mortgage broker offers loans from a variety of lenders, and the lending companies provide funds for the mortgage. Because mortgage brokers' experience and capabilities can vary, shopping around is your best bet to find not only a good personality fit, but also a broker who has the right knowledge to support your homebuying experience.
Consumers should speak with mortgage brokers because with more options, they have more choices in terms of both rate and loan types. Brokers know the guidelines, so they try to put you with a good fit from Day One.
Mortgage brokers act as the middleman between you and the lender, securing loans and gathering paperwork. They work in tandem with real estate agents, underwriters, lenders, title companies and attorneys through the entire purchasing process.
There are literally thousands of variables that can affect the outcome of your mortgage transaction. That's why you need a mortgage broker to act as a liaison between the title and escrow company, real estate agent, lender, appraiser, credit agency, the underwriters, the processors, attorneys, and any other services which may affect your transaction.
A mortgage broker also:
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