A Mortgage Broker In Action
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A mortgage broker is a person or a company who acts on behalf of a client who is in need of a mortgage in order to purchase a house or a business. As tradition would have it, it was banks who placed mortgages for years and years, and it is only recently in the last 25 years ago or so that mortgage brokers came forth into the limelight.
Mortgage brokers have contacts with many lenders, rather than just one, so they can present a variety of different lenders to the borrower and offer more choices to fit varying needs of borrowers. For example one buyer might be able to fit an interest only loan, because he may know that he is going to be transferred in a year or two, so a long term mortgage is not ideal for him. Another buyer may fit a 30 year mortgage due to financial and family circumstances. |
The mortgage broker is really a go-between and represents the borrower as to being the responsible party in finding an adequate lender who will furnish the loan. Most mortgage brokers in the United States work on a commission basis, so it is in the interest of the mortgage broker to do his or her best to make a deal. If the mortgage broker can bring the two parties together in the sense that the lender makes an offer, and the borrower agrees, then the mortgage broker will earn a commission.
The mortgage broker will handle all of the initial paperwork as far as making certain that the buyer receives and understands the paperwork and signs in the correct places and returns it to the mortgage broker in a timely fashion. The mortgage broker may have to deal with the borrower's attorney if the borrower feels that his attorney should be involved. A seasoned mortgage broker won't let that be a problem, and will gladly work with the attorney if it means that he can get a deal put together and closed.
Most of the transactions today are done over the phone and by the Internet. The client and the mortgage broker will probably never meet face to face, but by the time the transaction is completed, they both will feel like they have known each other their entire lives.
The mortgage broker serves a vital function in the processing of mortgage requests from prospective buyers, and making offers on the behalf of the lenders to the borrower. This function tends to move the transaction along due to the fact that it is in the best interest of the mortgage broker to accomplish that.
The mortgage broker will handle all of the initial paperwork as far as making certain that the buyer receives and understands the paperwork and signs in the correct places and returns it to the mortgage broker in a timely fashion. The mortgage broker may have to deal with the borrower's attorney if the borrower feels that his attorney should be involved. A seasoned mortgage broker won't let that be a problem, and will gladly work with the attorney if it means that he can get a deal put together and closed.
Most of the transactions today are done over the phone and by the Internet. The client and the mortgage broker will probably never meet face to face, but by the time the transaction is completed, they both will feel like they have known each other their entire lives.
The mortgage broker serves a vital function in the processing of mortgage requests from prospective buyers, and making offers on the behalf of the lenders to the borrower. This function tends to move the transaction along due to the fact that it is in the best interest of the mortgage broker to accomplish that.