What Exactly is a Mortgage Broker?

By Kelly Richardson
LoanPage.com Columnist

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With the increase in mortgage lenders and the products and services that they offer, you need someone to act on your behalf to find the solution that fits your financial situation. And that's exactly what a mortgage broker does. He's your representative on the inside of the business to find you the best deal for a new home loan.

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The mortgage broker has become an increasingly popular way for potential buyers to navigate the confusing world of home loans. There are a couple of reasons for this trend. First, homeowners are wary of the litany of loan offers and arrangements thrown at them from the collection of lending institutions. Second, mortgage brokers can assess a borrower's financial situation and filter out the products and services that are beyond or below the homeowners needs. Find a good mortgage broker, and he'll be worth his weight in gold when it comes time to sign for a home loan.

The Functions of a Mortgage Broker

  • » Education. Your mortgage broker will be an invaluable source of education for you. Since you don't deal in home loans on a daily basis, your mortgage broker will tell you everything you need to know and be looking for.
  • » Guidance. Since a mortgage broker understands most new home loan offers inside and out, they will provide you with guidance and advice concerning the most equitable offers for your financial and home ownership needs.
  • » Communication. A mortgage broker is essentially the go-between for you and a prospective lending institution. He'll be there every step of the way to make sure that all parties understand their responsibilities during the process.
  • » Pre Approval. When it comes time to engage in the borrowing process, your mortgage broker will pre qualify you for the products or services that most interest you, saving you valuable time in the process.
  • » Completing Applications. Because the application for a new home loan can be involved and confusing, your mortgage broker will help you to fill out all applications in full before they are sent.
  • » Submissions. Once the application process is complete, your mortgage broker will take over and submit all required documentation to your prospective lender for approval.
The bottom line is that a mortgage broker will simplify the home loan process. If you don't want to go it alone, a mortgage broker is a powerful partner for your financial concerns.

About the Author
Kelly Richardson covers the real estate scene in major cities across the country. His articles appear in educational journals, periodicals, and e-zines.

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