Mortgage Brokers: Advantages and Disadvantages

A mortgage broker acts as an intermediary between someone who wants to buy real estate and those offering loans to do so

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Mortgage brokers help would-be borrowers find a lender with the best terms and rates to meet their financial needs.

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Working with an experienced, competent mortgage broker can help you find the right mortgage. All the same, there are advantages and disadvantages to using a mortgage broker.

Choose a Mortgage Broker

Start by making sure you understand what a mortgage broker does. Then, ask friends, relatives, and business acquaintances for referrals. Take a look at online reviews and check for complaints.

When meeting prospective brokers, get a feel for how much interest they have in helping you get the loan you need.

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Ask about their experience, the precise help that they'll provide, the fees they charge, and how they're paid (by lender or borrower).

Advantages

A Broker May Save You Legwork Mortgage brokers have regular contact with a wide variety of lenders, some of whom you may not even know about.

A Broker May Save You Legwork In some cases, mortgage brokers may be able to get lenders to waive some or all of these fees, which can save you hundreds to thousands of dollars.

Many home buyers simply assume that a broker can deliver a better deal than they could get on their own, but this is not always the case

Disadvantages

You May Owe a Broker Fee Mortgage brokers are paid either by the lender or by you.