Are You Planning on Purchasing Your Dream Home and Cherish These Special Moments? Mortgage Brokers Vs Banks- Who Should I Select? As soon as it becomes necessary to finance the home purchase, whether excitement or anxiety sets in. With so much information online about lenders that provide low interest rates and real estate jargon to sort through.
Once again, two types of lenders come into the picture- banks and mortgage brokers. Let’s explore what mortgage brokers are and the differences between banks and brokers.
Who Is a Mortgage Broker? A mortgage broker serves as an intermediary, or middleman, between mortgage lenders and borrowers. Brokers help prepare mortgage applications with all necessary documentation attached so lenders can approve quickly.
Brokers do not use their own funds when lending; rather they connect the borrower with lenders according to his/her financial needs, including timeframe, mortgage amount, interest rates etc.
Mortgage brokers earn commission from either the lender (usually) or borrower, or both in some instances. Commission payments usually occur once an application has been approved by a lender.
Commission rates depend on several factors, such as loan size and duration; however, even small commission payments help borrowers save both time and effort when applying for mortgage loans. Mortgage brokers work with various lenders that enable them to offer multiple solutions when you come to them for help with mortgage applications.
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