Getting a mortgage from a mortgage broker
Getting a mortgage from a mortgage broker has become popular over the past 20 years. Borrowers shopping for mortgages find using a mortgage broker very convenient, saving them a lot of time.
Mortgage brokers help guide home purchasers through the process of gathering all the necessary financial documents banks require for a mortgage, the entire process can be quite involved. Mortgage brokers also provide a list of current mortgage rates to borrowers.
Some mortgage brokers will even help a borrower clear up their credit report so they can qualify for a better mortgage rate, or even qualify at all. During the recent housing bubble there were many mortgage brokers writing loans for people who could not afford the payments. Some unscrupulous mortgage brokers even forged borrower documentation so the borrow could qualify for a loan, or a larger loan. Most mortgage brokers are honest and do a good job finding the best mortgage rate.
Mortgage brokers do not originate loans. They search the marketplace for the best possible mortgage deal among a lender they deal with on a regular basis. Brokers are usually paid by the lender, not the borrower, for giving the lender the business. Since the lender pays the broker sometimes brokers steer applicants into a mortgage that might not be the best deal for the borrower.
Finding a good mortgage broker might take as much time as finding the best mortgage rate and deal. You should ask the broker for names and phone numbers of a few borrowers they recently helped.
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