Monday, December 28, 2015

Exactly What Is a Mortgage Broker

When you are thinking about buying a home the term mortgage broker is something you are likely to become familiar with.  It isn’t a term most of us completely understand or exactly what they do.  For simplicity’s sake a mortgage broker is a middle man between a borrower and someone who is eligible for a home loan.  Basically a mortgage broker is works with both a lender and a borrower to determine the eligibility of a new purchase or the refinancing of an existing home loan.  The mortgage broker is the go-between that brokers the mortgage on behalf of the individual or business and lenders.

The process usually begins when a borrower contacts a broker initiating a home loan.  The broker collects all of the information a lender will need from the borrower including their income, assets, employment history and credit score.  After this process is completed the mortgage broker works with lenders to determine what options in home loans are the best for the borrower as well as the appropriate amount and the loan to value ratio.  At this point the borrower decides on their own what they can afford with the brokers assistance.  

When a borrower works with a mortgage broker they do not need to deal directly with banks or lenders.  Mortgage brokers make money by charging a fee for their services or offering no cost loans where they utilize a lender credit.  Essentially this means that the interest rate the borrower is paying is a bit higher to cover the cost of their services.  

When you use a mortgage broker they can help you find the best rates on a home loan that are available within the market.  What happens when a borrower looks towards a single bank for a mortgage they are only receiving the rates and loans of a single bank whereas when using a mortgage broker the best home loans are presented and the borrower can choose between them.  Brokers are approved by banks and therefore individually contacted.  Different brokers have a variety of different bank contacts and therefore can offer borrowers a number of different quotes from a variety of different lenders.

When it comes to getting a home loan it is quite possible that a mortgage broker will provide the best guidance out of anyone as they have insight on the industry as a whole.  This is, in fact, what they are paid to do.  Mortgage brokers are more available then home loan lenders at a bank and tend to work on a more personal level with their clientele.  It is also important to note that if a home loan or mortgage is rejected by a bank lender it is done whereas with a broker they lead you to another lending source.  It is more likely to receive a mortgage offer, no matter what your credit status, if you work with a mortgage broker to obtain a home loan.

 Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at

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