Should I see a mortgage broker when I am refinancing my mortgage? When should I see a mortgage broker? There are many different answers to these questions. In fact, there is no right or wrong answer. What you do need to decide is what type of mortgage broker you want to be.
The two main types of mortgage brokers are independent mortgage brokers and captive lenders. Independent brokers work for themselves, representing the loan holders and lending institutions they originate loans for. This does not give them an exclusive or insider type feel. While independent brokers are able to get the best deals for their clients, they do not have the ties that bond the larger banks and lending institutions.
A captive broker works for one large lender, representing many other banks or mortgage lenders. While the lender may give the broker more flexibility in selecting loan programs for a specific client, this will also come at a cost. A captive mortgage broker will often be paid by commission, which means they will receive a portion of the money loaned out to a client. While this may be financially beneficial to the broker, it may cost the client more in the long run if the mortgage broker’s recommendations are not backed by the major banks. Contact Home Fast Funding for more information.
Another type of broker is a wholesale mortgage broker. These brokers are not tied to any one particular bank or lender. They do, however, work with small and large banks to get the best loan for their customers. This does mean that they will work on a commission basis, but as has been stated, they are still getting the same amount of money from the loan that is being extended. Brokers receive a percentage of the commission from the loan that they originate. These brokers can work with several banks, but usually prefer to work with one large institution.
With all of the brokers that are available to you, when should I see a mortgage broker? There are a number of reasons for this. Some of these include the fact that some brokers are willing to take the time to meet with you, informally determining if this individual is qualified for a mortgage or not. Another reason is that the majority of brokers understand what it takes to obtain mortgage funding, and therefore, they do not recommend clients that may have credit problems. When a broker offers you a referral, however, it is important to make sure that they have the appropriate experience to back up the referral.
The next question that you may have is, “How do I find the right broker?” The internet is your answer to this question. There are a number of websites that are devoted to brokers, their services, and any information that you may need. When you have this information, you can compare various brokers and choose the one that most adequately meets your needs before meeting with them personally.