What is a mortgage broker?
A mortgage broker is a middle-man between borrowers and lenders. The main job of mortgage brokers is to facilitate the mortgage process between the borrower and the lender.
Mortgage brokers shop around to find the best mortgage quotes and interest rates that fit the borrower financial needs.
Who pays a mortgage broker
Before you use a mortgage broker, you need to know how he/she is going to be paid and who will cover the payment. Mortgage brokers can be paid by either the borrower or the lender. If you are paying a broker, it is important that you know how much you will be spending on him/her and payment options.
As noted by Nerd Wallet, a mortgage broker who gets paid by a lender makes between 0.5% and 2.75% of the mortgage amount. More importantly, the broker cannot make more than 3%.
What questions should you ask a mortgage broker?
Before you work with a broker, it is important to know who the broker is, their experience, fees, etc.
The following are some of important questions you should ask mortgage brokers.
- How much do you charge for the services?
- Who will pay you?
- What are the mortgage providers you work for?
- How was the relationship between you and your former employers?
- Why did you stop working with your former employers?
- How long have you been in mortgage industry?
- Can I talk to the former lenders you worked with?
- What are the chances that I will qualify for a mortgage ?
