Question:

What is a mortgage broker?

Answer:

A mortgage broker is simply someone who provides mortgage loans to borrowers. Banks, lenders and different lending institutions usually develop their mortgage programs and mortgage brokers cooperate with direct lenders to distribute them to consumers. In fact, more than 70% of all residential loans in the US are said to reach consumers through mortgage brokers, and only 30% go directly through lenders.

Mortgage brokers are regulated on a federal and state level. Only one state has no mortgage lending laws.

What are the tasks of a mortgage broker?

What a mortgage broker does depends on the type of activity they do - some brokers offer financial management to their clients, beside mortgage lending. Also, if the mortgage broker's activity includes financial activities they are financially liable and responsible for providing accurate advice appropriate for the client's circumstances.

Basically, the description of mortgage broker activities includes:

  • Shopping loans on behalf of the client;
  • Credit history assessment and possibly helping the borrower improve their credit;
  • Getting pre-approval on behalf of the borrower;
  • Gathering paperwork and forwarding it to the lender;
  • Explaining how mortgages and homeownership work and legal disclosures.
Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
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Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
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Common misspellings: mortage and morgage