Mortgage brokers play a vital role in the mortgage market. The role of a mortgage broker is to identify borrowers who qualify for loans, find mortgage lenders willing to help and then close the deal. A mortgage broker serves as an intermediary who brokers mortgage applications on behalf of companies or individuals. The main job of mortgage brokers is to find mortgage lenders willing to finance borrowers’ mortgage applications.
Traditionally mortgage brokers were employed by one bank or mortgage company. They would find the borrowers, contact them, submit mortgage applications and find the best deal for the bank or lender. Nowadays however, mortgage brokers can be employed by any number of financial institutions. The Ascend Mortgage brokers can represent one bank or many banks. They can also be employed by individual homeowners, family groups, retirees and people with good credit scores.
The main reason mortgage brokers are now such a viable alternative to the traditional mortgage lender is the new home buyer’s desire for a quick and convenient home buying experience. The new home buyers are motivated by the ability to get into a new home with little hassle and with little down payment. When a new home buyer intends to finance the purchase of their new home using a conventional loan, it can take years before a new home buyer is able to acquire their first mortgage loan. Most conventional loans require applicants to have at least two to three years of credit history.
Another incentive to refinance your mortgage is the ability to find a competitive lender that will approve the borrower’s application fast. Through the use of an experienced mortgage broker, the borrower can obtain pre-approval for their mortgage loan within days instead of over several months. When a borrower gets pre-approved for their mortgage loan, it means that their credit score and credit history has not been affected. In many cases, a mortgage broker is able to secure a competitive rate on the borrower’s loan by providing them with a unique origination number that allows the mortgage broker to find a lender that is willing to approve the application faster.
The final incentive for mortgage brokers is that they can help borrowers with their closing process. Most borrowers will not be familiar with all of the steps involved in the closing process. When a borrower uses a broker to close their loan it cuts out the broker and any fees associated with their service. This also makes the entire closing process quick and efficient. Once the borrower is finished paying the lender, they do not need to worry about being bothered by a broker or their fees.
In conclusion, mortgage brokers work for the borrower. They provide a valuable service and add value to the mortgage process by doing legwork for the borrower. When mortgage brokers work for the borrower they add real value to the mortgage process by reducing the legwork involved in the closing process and by expediting the final steps involved in the closing. When mortgage brokers work for the borrower they have a fiduciary responsibility to the borrower and should act in the best interest of the borrower at all times. If you want to know more about this topic, then click here: https://en.wikipedia.org/wiki/Mortgage_broker.