What’s a Mortgage Broker: A Complete Guide

Whether your mortgage is up for renewal, or you’re on the search for a new one you may be wondering what’s a mortgage broker and should I use one? If so then you’ve come to the right place!

Keep reading to find out everything you need in the mortgage broker guide below and why you should look into one.

What’s a Mortgage Broker and What Do They Do?

A mortgage broker is a person who works similarly to a bank by making it their mission to find you the best mortgage rates possible.

Mortgage brokers like those at Landmark Mortgage Planners, have agreements with lenders, that aren’t just banks, on rates that they can provide to potential clients. The rates can be negotiated based on your credit score, and also be more open in providing mortgages to those with not the best credit scores.

Can’t I Just Use a Bank?

You could, but you’ll likely be missing out on some pretty great rates.

Banks only care about one thing: the investment that they make. This means that they’re not looking out for you when it comes to your mortgage, just whatever secures their loan to you. The rates will be more favorable to them, as well as the insurance that’s provided will only cover their invested interest.

That’s right, the mortgage insurance that you’re paying for with your bank mortgage? It only covers the portion that’s not paid off so if anything happens the bank is the only one that sees a penny of that insurance that you’re paying for.

Why Use a Mortgage Broker?

Now that you know what’s a mortgage broker and why banks are different you may be asking what’re the mortgage broker benefits.

Well, mortgage brokers will usually have access to rates that are more competitive than you would get at a bank. The private lenders give brokers wiggle room to offer better rates to save you money with options of fixed and open or closed mortgages the same way a bank does.

You also don’t have to pay the mortgage broker commission for their services. They’re paid a finders fee by the lender that you end up going with which means they will work harder to get you the best deal for you to sign up with them.

There’s Gotta Be a Catch…

There isn’t! Mortgage brokers offer the same security in your mortgage rates that a bank would except instead of a bank supplying the loan for your home you would be going through a private lender.

Private lenders are more open-minded than banks in terms of who they loan out to. While banks turn away potentially great clients just because they lack credit history, private lenders take the risk by offering more people the opportunity to buy a home. Without any catches.

Mortgage Brokers Taking Care of You

Knowing what’s a mortgage broker is the first step in making sure that you’re getting the best deal on your mortgage and keeping money in your pocket. Take the time to quote your mortgage around before settling with a bank, you likely won’t be disappointed.

Like what you’ve read? Check out the rest of our site for more great ways to save money!