Tuesday, October 28, 2008

Role of a Mortgage Broker

Let us first understand who is a Mortgage Broker exactly?

A mortgage broker is a well-trained professional representing those who seek home mortgages and provides them an ideal solution. Hence, he will give the clients the best mortgage solution. He is basically a financial matchmaker between the borrower and the lender. He is thorough with the entire mortgage processes. As per the real survey, Mortgage brokers are very knowledgeable professionals who find the best interest rate for the borrowers to suit their needs by taking quotes from various lenders and picking the right one for their clients. Federal laws, state laws and licensing boards, regulate all most all the mortgage brokers. The mortgage brokers charge a nominal fee for the services he renders to the customers. Borrower saves a lot of money due to the advice got from the mortgage broker. Mortgage brokers have access to lot of mortgage services and products at wholesale prices and they in turn market these services and products to their customers.

Let us now understand need for using a commercial mortgage broker:

With the help of a mortgage broker, the customer has all chances of getting loan options for an unbelievable amount. By engaging a mortgage broker, the customer gets his value for money spent on him. They provide the customers with excellent financing options according to their needs and objectives. When working along with a mortgage broker, the borrower’s loan application has the possibility of being submitted to various lenders, this in turn increases the chances of the loan getting funded and also gives the mortgage broker the power to bargain in getting the best deal.
Locating a mortgage lender is not an easy task. By engaging a mortgage broker, this process is simplified as he has contacts with many lenders offering various financial options to the home loan seekers.

Let me explain Advantages of hiring a mortgage broker:

The biggest advantage is that the mortgage brokers have extensive knowledge about the mortgage market. They can find the borrower the best financial solution from the available options. They reduce the time spent on searching for options by the borrower. They also can negotiate well with the lender and get the best possible interest rate to the borrower.

As we know every coin has its two sides so there are certain disadvantages too for hiring a mortgage broker. The unscrupulous brokers might be there who show bias towards the lenders and make the borrower pay higher fees and commissions instead of providing an appropriate product or service to him. It can also happen that some brokers may be void of training and knowledge about the mortgage industry but may make the customers believe that they are good knowledgeable people. Not all the brokers may have good contacts with the lenders is just the most disadvantageous thing. Some mortgage brokers might also charge heavy fees to their customers.

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