Although you probably have a very good idea of what a mortgage is, or even a refinance loan, most people are not quite sure what the purpose of a mortgage broker is. By definition, a mortgage broker is a person that serves as an intermediary between the applicant trying to get the loan, and the lender or bank that will provide loan that they need. Most brokers have access to a wide range of lenders, allowing you to get multiple quotes from different businesses competing for your business. Whether you get the loan or not has to do with the debt to loan ratio that you have, as well as how much income you make and the current state of your credit score. The mortgage broker will take all of this information, and try to locate the best possible loan for you.
Essentially, mortgage brokers will do exactly what you would on the Internet when searching for the best loans available. The primary difference is that they have all of this information at their fingertips, and can save you the time and trouble of finding the best rates available. In the same way that people will retain a lawyer so that they can utilize their expertise when facing a legal situation, the mortgage broker typically has years of experience in this type of industry, and will be able to help you secure the best possible loan for your situation.
First time buyers should definitely consider using mortgage brokers. If you are a complete newbie, having never purchased a home before, or if you are looking at doing a home equity loan or refinance, these individuals will have the knowledge necessary to not only find an affordable loan, but will be able to help you every step of the way as you complete the necessary paperwork, and finally complete the process. Essentially, they will act as advisers as you go through this process, making sure that you eventually get the loan that you want.
Of course, mortgage brokers charge a fee for their services. You should look at what they charge in the same way that points are sometimes added on in order to get the best interest rate. By using qualified mortgage brokers, you can quickly find exactly what you need, without having to stress about the entire process, trusting that they will be there every step of the way until the process is complete.