Why Should I /we use a Mortgage Broker

Why Should I we use a Mortgage Broker Why Should I we use a Mortgage Broker by http:www.articledashboard.comprofileShawn-O.-Jackson44997Shawn O. JacksonWhy Should I we use a Mortgage Broker A mortgage is likely the biggest burden youll ever carry. Its a loan of monstrous proportions, clearly, the goal is to find the most competitive interest rate on that enormous sum, but not everyone knows how to go about doing that. A mortgage broker is a certified professional that has been around for 30+ years who seeks the best mortgage terms for you by accessing a network of lenders that includes major banks, trust companies, credit unions and finance companies. Brokers may also draw on local lenders that arent part of a network. This stable of lenders provides brokers with interest rates on a near-daily basis. While they have relationships with the countrys biggest lenders, a mortgage broker is not obligated to any of them. A broker is obligated only to you, the client. They will sift through their posted rates to find you the best one. A misconception -- which still exists today -- is that brokers earn an up-front fee from clients. Brokers do not charge clients a fee, either before or after theyve secured them a mortgage. So how do brokers get paid? They earn a commission from the lender. Commissions are fairly standard, ranging from 0.5 percent to 1.25 percent of the mortgage amount, depending on the length of the term. Brokers are paid by lenders, not by you. Since a broker is paid only when a loan is originated, it costs a consumer nothing to work with one for research purposes. For borrowers with less-than-perfect credit or low income, a broker may be able to access loans from out-of-state or specialty lenders that, even if they include additional closing costs will still beat a bank