What is a mortgage broker?

Home Forums Mortgage What is a mortgage broker?

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    Team StellarFi

    A mortgage broker mediates between you and your potential lenders.A mortgage broker compares mortgage lenders to find the best rates suited to your needs. They work with several lenders, making it convenient for you to shop for the lender with the most competitive rates.

    Mortgage brokers are regulated and licensed professionals. They collect your documents and compile them for you — pulling your credit history and verifying your income and employment — which will help you negotiate rates and terms faster.

    After you choose your loan and lender, the broker works with the bank’s underwriting department, closing agent, and your real estate agent ensuring a smooth transaction. 

    Mortgage brokers get paid either by lenders or borrowers, but never by both. Mortgage brokers also cannot charge hidden fees or charge borrowers based on their interest rate according to the Dodd-Frank Act. Mortgage brokers usually charge 1% to 2% of the loan amount

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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