Mortgage Dictionary -> Mortgage Broker
There are financial planners, accountants and other people who give you advice when it comes to money, so it should not be surprising that there are also mortgage brokers. The role of the mortgage broker has greatly increased over the past two decades, and the mortgage broker is quickly becoming an essential part of the mortgage process for both lenders and borrowers alike. However, few truly understand what the mortgage broker is and what duties they perform.
What is a Mortgage Broker?
A mortgage broker is someone who is essentially the middle man between borrowers and lenders. Mortgage brokers seek to build up communications between the two parties, with the ultimate goal being a mortgage. In return for their hard work, mortgage brokers are rewarded with commission and bonuses by the mortgage company. In many ways, the mortgage broker is like a salesman: someone who seeks to sell a person on a product.
What Does a Mortgage Broker Do?
The mortgage broker actually has quite a few tasks to perform. Among these are marketing to attract borrowers, assessing the borrower's needs, finding an appropriate mortgage, gathering all necessary documents and securing the mortgage itself. Brokers generally do not work for lenders, but rather, are independently employed.
Why are Mortgage Brokers So Useful?
There are many reasons why mortgage brokers now flourish in the real estate market.
Getting a Mortgage is Difficult. For the average borrower, applying for and securing a mortgage in order to get a home is downright difficult. Mortgage brokers help to make the process much easier and smoother, so that the borrower does not have to worry so much about paperwork.
Tough Market. Borrowers need every advantage they can get in order to secure a mortgage in this difficult market. Because mortgage brokers are professionals and know what they're doing when it comes to mortgages, borrowers have a much better chance of getting the mortgage they want if they go through a mortgage broker.
Better Mortgage Deals. If you have difficult financial circumstances, then you're probably looking for a mortgage that fits you. Looking on your own for such a mortgage can be tough, but a mortgage broker can find the one that is best for you and will not leave you feeling overwhelmed.