A good mortgage broker is well worth the cost. Following is an overview of what mortgage brokers do and how they are paid for your consideration.
What is a Mortgage Broker?
A mortgage broker does not work for any one bank. Instead, the broker takes your mortgage application paperwork to a number of lenders in order to help you find the best possible deal. Working with a broker can make it easy for you to obtain a loan even if you have less than stellar credit, a low down payment and/or other special circumstances that could pose a challenge when applying for a conventional mortgage loan.
At the same time, working with a broker is still a good idea even if you have a stable financial situation and great credit. A broker can save you a lot of time and help you unearth great deals you would not have been able to find otherwise.
How do Mortgage Brokers get Paid?
While some mortgage brokers are paid by the bank that winds up accepting your paperwork, in many instances you, as the borrower, are responsible to pay the broker. The fee varies depending on which broker you use but it should not be more than 2% of the total loan. You can either pay the broker upfront or add the payment into your mortgage loan.
A mortgage broker is required by law to tell you exactly how much you’ll need to pay before you contract his or her services. Brokers are prohibited by law from charging hidden fees, so you never have to worry about paying more than the quoted price tag. Additionally, the broker’s payment cannot be tied to your home loan’s interest rate.
Mortgage Investors Group offers mortgage broker services, providing access to multiple loan options to suit the needs of aspiring homebuyers of all ages and walks of life. If you want to learn more about the loan process, apply for a mortgage loan or refinance an existing loan, talk to a loan officer at one of our many branches about your situation. We also offer handy online mortgage application services that allow you to submit paperwork to our mortgage company without making an appointment with a mortgage lender.