When it comes to buying a home, there are many options available to you. One of these options is to use a mortgage broker. A mortgage broker is a professional who works with lenders to find the best loan for you. They can help you navigate the complex process of obtaining a mortgage and can even help you save money by finding the best terms and rates.
When working with a mortgage broker, it is important to understand their fee structure. Most brokers charge a fee of 1-2% of the loan amount. This fee is usually paid by the lender, but it is important to clarify this early on in the process so that there are no surprises on closing day. Mortgage brokers can also help you access loans that would not otherwise be available to you.
They work with many lenders and can make lenders waive application, appraisal, origination and other fees. In addition, they can help you get better terms and rates than you would be able to get on your own. The National Federal Mortgage Association (Fannie Mae) buys and guarantees mortgages from lending institutions in an effort to increase affordable lending. This means that borrowers have access to loans that would not otherwise be available to them.
When looking for a mortgage broker, it is best to get referrals from family, friends and your real estate agent. It is also important to discuss all the pros and cons of using a mortgage broker so that you can make an informed decision about whether or not it is right for you. Once you get a loan and the lender that best suits you, your mortgage broker will work with the bank's insurance department, the closing agent (usually the title company) and your real estate agent to make the transaction run smoothly until closing day. In addition, some lenders work exclusively with mortgage brokers.
It is important to understand all the terms associated with using a mortgage broker so that you can make an informed decision about whether or not it is right for you.