What is a Mortgage Broker

A Mortgage Broker is a professional that searches for a bank or lending institution that will offer mortgage services to those who fit their criteria. Mortgage Brokers often deal with dozens of lending institutions and can almost always match you with a mortgage that’s suits your needs. This is great for those searching for a loan, because the broker can wade through their list and offer you the lowest interest rate possible. Since the Mortgage Broker is paid by the lending institution (once the mortgage has been processed), Mortgage Brokers almost never charge any fees to the borrower.

Dealing with a Mortgage broker takes a lot of the legwork out of the whole borrowing process. If you were to deal with a bank, you would have to complete an application form and wait for processing and approval which many not even happen. You could not deal with as many banks as efficiently as a broker could without a Mortgage Broker license. Also, the broker does all the corresponding with the lending institution efficiently, saving you a lot of paperwork and time. These days Mortgage Brokers are the preferred method of obtaining a  loan. A broker will have vast knowledge to aid and guide you through the process. That’s why most of the mortgages today are sold by brokers, not lending institutions.

 

Difference Between Mortgage Broker and Mortgage Agent

Mortgage Brokers and Mortgage Agents both carry out mortgage activities for a Mortgage Brokerage. A Mortgage Agent can only work for one Mortgage Brokerage at a time. As well an Agent will be under the supervision of a Mortgage Broker. A Mortgage Broker has obtained a higher level of education. He / She is authorized to supervise Agents and deal directly with private investors.  The Mortgage Broker will negotiate on behalf of the borrower to get the best rates possible from the lender.

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