What is Mortgage Broker?

Summary: A Mortgage Broker is the middleman between the borrower and the lender. They often have excellent connections within the mortgage industry and are able to secure the best deal on a loan.

Finding a competitive loan from among the great variety of financial products available in the debt market today can be a very stressful experience.

Where once you would head straight for your bank to organize a loan, today banks have a relatively limited range of offerings and are often driven by their sales target.

The broker's role is to search for, compare and offer you a choice between the various options that meet your requirements. Your broker knows what products are on the market and can research these to find the right one for you, thus saving you valuable time.

You don’t have to wade through all the financial jargon or worry about which product has the features you need. Your broker knows what you need, knows what the lending institutions have to offer and matches you with the best product.

Tips On Dealing With A Broker
Which lenders and which loan products does the broker offer?

 When it comes to looking for a loan, all you have are your local lenders. Some of them might reject you based on your credit history and some of them might not have the type of a loan you are looking for. Mortgage brokers usually have access to lenders all over the country and will work with you to find the best lender that will accommodate your needs. In today's economy this becomes especially essential as it is very difficult to qualify for a loan, whether it's your first mortgage or a refinance, unless you have a top-notch credit history.

Royalton MFS Group Inc. (647) 352-2001 

 How does the mortgage broker determine suitable loan options for you?

Ask your broker to outline why they have recommended one loan over another. This may relate to the amount of deposit you have, level of documentation, and length of employment. Remember the cheapest loan may not be the one that best suits your requirements.

How does the mortgage broker get paid?

Mortgage brokers do not charge you a fee. Instead, they get paid a commission by the bank, financial institution or private lender you close your loan with. The commission depends on the size of the loan and terms. It makes sense for banks to pay a commission to the mortgage brokers, since they are the ones who find the client, and each bank has its own pay structure for this service.

  

What does a mortgage broker do for you?


• Meets with the borrower to understand their specific loan needs.

• Researches the range of lenders and loan products they have available to provide options for the borrower to choose from.

• Assists in completing the loan application and collecting the appropriate documents for the lender’s requirements.

• Submits the loan application and assists the lender with any further questions throughout the approval stage of the loan.

• Assists the borrower and lender as required at settlement.

• Be available to assist the customer as the need occurs at post-settlement.

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