Mortgage brokers are among some of the most misunderstood mortgage professionals. There is a lot of confusion from the public about what a broker actually does and under what circumstances someone would want to use a broker. Here are some of the most common myths about mortgage brokers and the truth.
Many home buyers believe that using a mortgage broker will cost more because of the commission paid to the broker.
That is simply not true.
Similar to a travel agent, a mortgage broker is compensated by the company that the service or product is placed with. In the case of a mortgage, the lender, not the client, pays the broker.
Brokers work hard to get their clients the best mortgage at the best rate.
The amount of commission is not based on the interest rate, so it does not affect this at all. Rather, it is based on the amount of the mortgage.
This is not true. A mortgage broker can help a buyer save money and help the home loan process go quicker and smoother. Here are some of the things that a mortgage broker can do:
Some people believe that mortgage brokers are only for people with bad credit -- those who have tried all the banks and cannot get an approval.
In reality, the services of a mortgage broker can benefit any buyer, regardless of their credit history.
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