You have found this page because you are probably planning to hire a mortgage broker to help in your mortgage applications. Read on as this post is for you. Specifically, we are sharing five facts about a mortgage broker, which can help you make the most intelligent mortgage decision.
In a nutshell, a mortgage broker, Tempe, AZ, manages the process for you by sending out loan applications to different lenders, finding competitive interest rates, and making loan term negotiations.
Fact #1: A mortgage broker acts as a middleman between you and prospective lenders.
As a middleman between you and prospective lenders, a mortgage broker works on your behalf with various banks intending to find mortgage lenders with competitive interest rates that best fit your needs.
As the job of a mortgage broker’s complex, it requires top-notch mortgage skills and experience. Thus, it just makes sense that a mortgage broker is a licensed and regulated financial professional.
Fact #2: A mortgage broker get paid in several methods
There are mortgage brokers that get paid by lenders through compensation plans. They are usually between 0.5$ and 2.75% of the loan amount.
There are also mortgage brokers who get paid through what we call “borrower-paid-compensation.” Meaning, borrowers opt to pay their brokers themselves.
Fact #3: A mortgage broker is different from a loan officer
A mortgage broker works independently from any institution or within a mortgage brokerage firm. On the other hand, a loan officer works for lenders. They are their employees who are paid a set salary for writing loans for them.
Fact #4: Comparing Loan Estimates from different lenders can make a significant difference
When choosing a lender, pay close attention to lender fees. Ask your broker about the fees associated with the mortgage loan. In particular, focus on page two of your Loan Estimate form in the Loan Costs section under “A: Origination Charges.”
Placing side by side and comparing the Loan Estimates from your prospective lenders is the best way to make an informed decision on your mortgage loan applications. Pay close attention to the interest rates and all of the fees and closing costs for a more effective comparison.
Online looking for the best mortgage broker, Tempe, AZ? Talk to a mortgage expert from HomePlus today. Please call 800-810-PLUS (7587).