A mortgage broker is a person who brokers mortgage loans for people or companies. A mortgage broker is typically not licensed in the same way as a mortgage lender, but they do have the ability to loan money. The mortgage broker’s job is to find a lender willing to make an offer on a mortgage loan. They then find the right buyer for that loan. They often negotiate the best interest rate possible for the buyer. Brokers sometimes help buyers secure pre-approval for their mortgage loan through what is called “bad credit” lending. Wealthy You is an excellent resource for this.
Mortgage brokers must obtain approval from a lender before they can begin to search for buyers. There are a few different types of mortgage brokers, and they include commercial mortgage brokers, residential mortgage brokers, and sub-prime mortgage brokers. It is important to know which type of broker you need, because each one will have a slightly different access to lenders. It is also important to understand the different mortgage rates that are available, because these too depend on the type of broker you choose.
There are many different types of borrowers who can benefit from working with mortgage brokers. Borrowers can benefit from having someone they can trust to guide them through the process of finding loans. Many borrowers have been able to find loans at very attractive interest rates simply by working with a mortgage broker. This is because brokers often work with larger banks or credit unions, which have connections with some of the best mortgage lenders. These larger banks will be able to offer borrowers better loan terms than they would find on their own. Mortgage brokers will also be able to find borrowers interested in homes they cannot get approved for on their own, because larger banks often work with real estate investors.