Mortgage brokers are middlemen between borrowers and lenders, who help facilitate transactions for home buyers. They’re responsible for collecting information about the client’s finances, processing loan applications, gathering supporting documents, and more. Some mortgage brokers also originate mortgages — which means they put together a package of different lending institutions in order to find a lender who is willing to lend more than the client’s current credit score would allow them otherwise.
1. Mortgage brokers, who are middlemen between borrowers and lenders, facilitate transactions for home buyers.
Mortgage brokers, who are middlemen between borrowers and lenders, facilitate transactions for home buyers. They help renters find the best mortgage and navigate the mortgage process with their lender.
Mortgage brokers can also get you the best loan terms—allowing you to pay off your house faster or reduce your interest rate by as much as half.
2. Mortgage brokers tend to work either for themselves as independent contractors or in a brokerage firm.
Mortgage brokers tend to work either for themselves as independent contractors or in a brokerage firm. Either way, they’re paid by the lender and not by borrowers. They find clients, negotiate with lenders on their behalf, and then close deals and submit paperwork to get your loan.
3. Some mortgage brokers also originate mortgages.
Mortgage brokers can originate mortgages. They are also known as loan officers, and they are licensed by the state they work in.
4. Most mortgage brokers develop their business through repeat customers and referrals from real estate agents with whom they have relationships.
Most mortgage brokers develop their business through repeat customers and referrals from real estate agents with whom they have relationships. Mortgage brokers can be independent contractors or work for a brokerage firm. They may also offer other services, such as insurance and title services, but these are not required by law to be included in the broker’s license if they’re not being sold separately to consumers.
Mortgage brokers help home buyers through the mortgage process by providing information about loans available in your area, explaining how different types of loans work together (e.g., FHA vs VA), finding out what type of down payment amounts will qualify you for a particular loan program (e.g., 20%), helping borrowers make decisions about which lender(s) would best suit their needs based on their financial situation at that time; etcetera
5. There are no formal educational requirements to become a mortgage broker, but many states require licensing.
If you want to become a mortgage broker, there are no formal educational requirements. But many states require licensing. The license can be obtained through the state or territory where the broker works and is valid for one year only.
The most common licenses required by states include:
- National Association of Mortgage Brokers (NAMB) – This organization offers training programs that help students understand their role as mortgage professionals. The NAMB also gives members access to networking opportunities and other support services such as career resources and industry publications. After completion of these courses, individuals will receive an associate’s degree in business administration with a concentration on finance or accounting; this degree qualifies them for becoming licensed under certain circumstances (see below).
7. Mortgage brokers have a variety of job duties, including collecting information about the client’s finances; processing loan applications; gathering supporting documents; pricing loans; communicating with various parties involved in the transaction; ensuring all legal requirements are met; and overseeing other tasks to complete the loan transaction.
Mortgage brokers are not lenders. They’re middlemen, and their job is to help you get a mortgage by collecting information about your finances, processing loan applications and gathering supporting documents. Mortgage brokers can be helpful in finding the right type of loan for you—they can help you determine whether it’s best to refinance or buy another home with different features than what you have now.
In addition to helping borrowers find financing options that make sense for them based on their circumstances (i.e., debt level), mortgage brokers also play an important role in ensuring that legal requirements are met before closing on an FHA-insured purchase or refinancing transaction.*
The process begins when you contact a local lender with questions about buying property or refinancing existing debt obligations into another type of mortgage product like reverse mortgages.* This may include determining if there are any special conditions associated with what kind of property is being purchased (like whether there needs to be access built onto backyards) which could affect how much money would need to be paid upfront as a down payment.*
10. Many clients prefer to work with mortgage brokers because they can help guide them through the process and take some of the burdens off of home buyers.
Many clients prefer to work with mortgage brokers because they can help guide them through the process and take some of the burdens off of home buyers.
Mortgage brokers are experienced in helping home buyers obtain loans, find out what they need to know about different types of loans, and understand how much money is needed for each stage of the process. They can also explain all that’s involved in getting a loan approved – including things like how long it will take before you get your first payment or when your closing date is scheduled for completion.
12. Mortgage brokers play an important role in helping people get funding for their homes by pulling together different institutions in a loan transaction.
Mortgage brokers play an important role in helping people get funding for their homes by pulling together different institutions in a loan transaction.
They can help you find the best mortgage for your needs, understand the process, and figure out how to make it happen.
Mortgage brokers are often referred to as “financial advisors” because they offer advice on personal finances, including purchasing a home or refinancing an existing one.
So, now that you know about the role of mortgage brokers, what do you think? Are you ready to start working with one?
If so, we’d love to hear from you. We’re always looking for new ideas and ways to improve our service through customer feedback. Tell us what you think by filling out our online form!