When talking about real estate, the term “mortgage broker” is used quite often, but what exactly is a mortgage broker? A mortgage broker is someone that you hire to work as a match maker. They are the ones that match you up with a bank or lender to issue you your mortgage.
What Does a Mortgage Broker Do?
Since the mortgage broker will be deciding something very important on your behalf, they will first need to collect all your important financial information. This would include pay stubs, tax returns, checking account statements, a credit report, etc. Basically, you would provide them with anything that is mandatory in order to obtain a mortgage. The biggest advantage and benefit of a mortgage broker is that they are able to compare multiple mortgage rates from multiple lenders and find the lowest rates or programs with the lowest costs. As regular people, we’re not licensed nor do we have the connections that brokers have to see what is available at one time. Mortgages brokers work with all types of mortgages. They work with FHA Loans, conventional loans, jumbo loans, mortgage refinances, etc.
How Can I Find a Mortgage Broker?
Brokers are usually recommended by your real estate agent or by a friend. You can also find one online that works in your local area or the area you want to live in. If you’re looking for one, there are lots of mortgage broker overviews online to help you in your search.
Do You Absolutely Need a Mortgage Broker?
The answer to that question is no. No, you do not need a mortgage broker in order to get a mortgage. You are completely free to go about shopping yourself and do your own research. A great candidate for a mortgage broker is someone who has an incredibly busy schedule or someone that is looking to purchase investment property in a different area. If you’re looking to buy property in a different state, mortgage brokers are great because they do all the work for you while you’re remote. Someone who doesn’t have time because they have so much going on will also greatly benefit from a mortgage broker. Since mortgage brokers are commission based, it might be wise to do a little bit of your own research and compare the results. This way, you’ll know if the mortgage broker truly has your best interest in mind. It’s also important to see if your broker is commission based or if they charge a fee upfront.