It can be hard to compare mortgage rates. It is important to find the best rate and the right loan for you. The best way to secure the best home loan is through a mortgage broker.

A broker can help make the most out of your mortgage programs. A broker can assist you with every aspect of your mortgage process, not just with one lender.

What is a mortgage broker?

A mortgage broker can act as an intermediary between your lender and you. A mortgage broker can help you access a wide range of loan programs from different lenders. The broker doesn’t actually make loans. The broker can work with many lenders.

A mortgage broker will generally have extensive knowledge about different home loan programs and an idea of what rates you may be eligible for.

A mortgage broker is not the same as a loan officer. Mortgage brokers do not have to be limited to one lender.

After you have chosen a loan program, the broker will manage the entire process from pre-approval to closing by coordinating the efforts with the title company, lender, and real estate professional. This is an invaluable service, since the home-buying process can be complicated.

What fees are charged to brokers? Both you and the lender cannot pay your broker’s fees. Dodd-Frank also caps the broker’s cut at 3 percent of the loan amount in points and fees.

Step by Step Guide to How to Buy a House

Why would you choose to have a broker represent your mortgage lender instead of a lender?

A mortgage broker will help you quickly access different home loan programs. A mortgage broker can help you find the best home loan option for you.

Pros

  • Opportunities for easier access: Many mortgage brokers work with regular lenders and may be able get you the best rate. You might not be eligible to borrow from some banks or lenders because of the connections made by brokers.
  • It’s time-saving: A mortgage broker has a lot of knowledge about different programs. You can save time and effort by having them conduct research, negotiate, and handle paperwork. You can also cut down on the time it takes you to purchase a house.
  • You could save money on fees. This all depends on the broker or lender. Sometimes a broker can get the lender to waive some fees.

Cons

  • It is possible that your interests are not compatible. While a mortgage broker might be able and willing to help you find the best deal, they may not be motivated. Depending on the arrangement with the lender, your interests and those the broker might not always coincide. Credible gives you complete control. Any one of our lenders can offer any type of loan you require. We are not obligated to refer you to one lender. It is up to you.
  • Estimates are not guaranteed If you work with a broker to get a mortgage, it is possible to receive a “good faith estimation.” This is just an estimate of the final terms. It is possible that you will find out later that the lender has a higher rate or charges additional fees. Credible is transparent, and there are no surprises. Our partner lenders will send you the initial Loan Estimate. The disclosures will show the same rates and fees.
  • Brokers are not all Lenders. Some lenders do not work with all brokers. You might have more options with a broker than with the lender. However, it is possible to not see all the possibilities.

Tip It doesn’t matter if your lender is an individual or a broker. Be aware of the fees. These fees are not excessive, but they are a part of the normal cost of buying a home. Lenders and brokers can negotiate fees. Clients do not pay broker fees. This means that the broker is usually being paid by the lender. It is important to make sure that the broker does not steer you towards something that may be more beneficial to you.

Credible is an online broker. It is easy to compare loans and find the best loan for you. We are transparent about rates and fees unlike brokers that might conceal fees or make it difficult to compare rates.

Credible allows you to easily compare prequalified rates from all of our lenders.

How to find a mortgage broker

These are the steps you should take to find the right mortgage broker to help you get the best possible home loan deal.

Ask for recommendations: Talk with people in your network to discuss home loan transactions. Ask your broker for referrals.

Find out how they are paid.Find out if the broker is paid by the lenders or if the borrower must pay a fee. Learn how different lenders compensate them and how they handle closing costs.

Find out who they are working with. Get a sense of which lenders they trust and what programs they offer.

Learn more about the process. See how the mortgage broker interacts with clients. This includes how often they respond to your messages and what you can expect when working with them.

Check their license Financial professionals can also be licensed as mortgage brokers. To verify that they are current, you should contact your state’s financial licensing office.

Online mortgage brokers are available. Credible is an online broker that can help you compare mortgage options so you don’t feel steered in one direction.