A Mortgage broker is a private company that negotiates terms of a mortgage between the borrower and lender. A broker needs to be licensed and approved to work in his state of operation. Traditionally you can go to your local bank and get a mortgage through them but going through a mortgage broker can save you money. With banks, they work to make money off the deal and close it as soon as possible but with a good mortgage broker, they are more interested in building their clientele so they will do anything they can to get you the best terms for your loan.
Here at MJS Financial we always do what is best for our clients because we do see them as one time deals but as a relationship. We offer competitive low rates and try our very best at getting the best terms in the state of Florida. Call or apply today.
Why Use A Mortgage Broker Instead Of A Bank
Banks work internally and offer you rates and terms based on what upper management permits. While mortgage brokers usually have a group of lenders they are approved for and can shop around for you with different rates and terms. Using a mortgage broker can give you a much rang for your mortgage and what fits your budget.
Banks can also deny you of service if they do not like any aspect of the loan and think it is not in their best interest. A mortgage broker will try anything and everything in their power to find a lender for you before denying you of service. Some banks might also have application fees or processing fees. Fees that a good mortgage broker should never charge a client. Here at MJS financial, we do not charge any application fee the only fee you might encounter before closing is a small fee to run your credit.
The last reason to use a mortgage broker over a bank is the lack of cross-selling. At a bank, the loan officer might offer you additional service or try to bundle services you might not need into your mortgage for an extra charge. Mortgage brokers would never do this since they work on behalf of you and do not have any commitment to any specif lender.
How Mortgage Brokers Make Money
Mortgage brokers are paid a commission as a percent of the loan amount. A mortgage broker can agree on his own commission per deal so they can make as little or as much (with a cap) on a deal depending on the transaction. The commission can be lender paid or borrower paid. This means that if you use a mortgage broker and they get you a great deal all you might have to pay them was the charge for running your credit. If the loan is complex and the lender doesn’t like the loan so much than borrower-paid commission can help a borrower get better terms.
On the closing disclosures, you will be able to see exactly how much the broker is making from the transaction. Giving a level of transparency while at banks they do not necessarily need to disclose how much the loan officer is making on that transaction.