How Mortgage Brokers Help You Find a Loan

If you are in the process of buying a new home, then you have probably heard of mortgage brokers. They are professional who complies and filters lending options that are available for their clients. They will also help you to shop for the available lenders for the best interest rates depending on your credit history, financial situation, and goals.

Professional brokers have many tasks to do while working with you. They are very important in the homebuyers market. Not everyone can walk into a bank and be approved immediately. They sometimes have better interest rates than a bank because they have regular deals with clients. Some of the things that they do to help you are:

  • They speak to you in depth about your past and current financial situation and what you plan to do about the debt that you have. They make sure that you can afford a specific loan monthly that you are applying for.
  • They will find and explain the loans and financing options that are available to you.
  • They work to get you pre-approved for the loan that you have decided on.
  • Assist you with the loan application and other paperwork. This includes confirmation that you are gainfully employed, your hourly wage rates or salary, credit report and other financial documentation that the bank or lending agency is asking for.
  • Once you are approved, they look over the documents carefully before having you sign them. They will get a property appraisal set up and be there for you all the way until the close of the house.

Mortgage brokers do a lot of work and have to get paid somehow. They receive a commission from the lenders they work with. That amount will vary greatly depending on the lenders and price of the house. The biggest part of their payment is an upfront commission payment. It is generally around 0.3-.5% of the total loan value. They also may get a trailing commission. This payment is a recurring commission that is based on the rest of the loan amount each year. Some lenders don’t give this benefit, while others pay 0.1-.2 percent of the remaining property value. It’s paid on a monthly basis.

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