Work with a mortgage broker who can shepherd you through the intricate lending process from start to finish.
A mortgage broker acts as a middleman between you and potential lenders. Mortgage brokers have a well-developed stable of lenders they work with, making your life easier.
Mortgage brokers are licensed and regulated financial professionals. They do all the legwork — from gathering documents from you to pulling your credit history and verifying your income and employment — and use the information to apply for loans on your behalf with several lenders in a short time frame. Mortgage brokers are licensed financial professionals. They gather documents, pull your credit history, verify income and apply for loans on your behalf.
Like most sales professionals, mortgage brokers charge a commission for their services. Monitor your credit score for free. So what makes loan officers different from mortgage brokers? Loan officers are employees of a lender and are paid a set salary plus bonuses for writing loans for that lender.
NerdWallet has researched the major national mortgage lenders to help you quickly find the best one. See our top picks. Some banks and lenders work exclusively with brokers, and that positions you to get qualified for certain loan products if your mortgage broker has a good relationship with those lenders. A mortgage broker can save you the hassle of managing all those daunting details. Using a broker can also narrow your access to some large lenders.
In the aftermath of the housing collapse, some large banks stepped away from wholesale mortgage lending and stopped working with mortgage brokerage companies. You can get around this potential roadblock by working directly with an individual lender, especially if you already do your personal banking with that lender. You might be able to negotiate better terms and a lower rate. That said, brokers have the ability to comb the marketplace to provide you with a variety of loans to choose from.
Another great referral source: Ask your agent to give you the names of a few brokers that he or she has worked with and trusts. For more, review our detailed guide to picking a broker or lender. You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved.
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