Question:

What does a mortgage broker do?

Answer:

What a question - what does a mortgage broker do? Mortgage brokers help consumers obtain home loans. They have contact with virtually hundreds of direct lenders, have access to hundreds of mortgage loans and can shop the best loan for the borrower most quickly and effectively.

What mortgage brokers do is a little different from what lenders do. That is, lenders fund loans and design mortgage loan programs while mortgage brokers act as intermediaries between the lender and the consumer. Even though a large mortgage broker could fund loans and hold them in their portfolio, mortgage brokers usually become correspondent lenders once they gain the capital and expertise to originate and fund loans on their own.

Mortgage brokers are compensated through points and commission - on the part of the lender and on the part of borrowers. However, the mortgage broker is not obligated to find you the best deal even though they are able to. In order for a mortgage broker to act as your agent, you will have to agree in writing about a mortgage broker working exclusively for you.

Use referrals and recommendations from your real estate agent and/or friends to contact a good mortgage broker.

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