A mortgage broker is a professional that brokers mortgage loans for individuals, corporations or other qualified borrowers. They obtain their licensing from the Federal Mortgage Insurance Corporation (FMIC) and are supervised by the Office of the Superintendent of Financial Services (OSFS). Mortgage brokers can also work directly for a lender. A mortgage broker will earn a commission on the loan if a borrower purchases one of the company's mortgage products. The commission will be on top of the initial mortgage origination fee which can be as much as 15% of the amount of loan.
In order to become licensed as a mortgage broker, brokers must undergo a thorough credit check process. Their job involves developing mortgage loan applications and performing quality assurance checks on them before they are presented to borrowers for approval. Mortgage brokers in Michigan must have a proven track record of developing mortgage loans that meet the specific needs of their clients. Brokers must have a proven track record of generating mortgage rates that are both lucrative and guaranteed to be repaid.
So how do you know if you want to work with a mortgage broker? Do you feel comfortable working directly with a mortgage broker? If you're thinking about working directly with a broker, it may be because you have a lender that licenses brokers to assist borrowers in the mortgage process. However, brokers do not need to be licensed mortgage brokers to assist individual borrowers with the mortgage process. Before you decide to work with a broker, you should consider how much experience the broker has with the mortgage process and how comfortable you feel with him. You also need to consider your tolerance for fees.
Do you know the difference between mortgage brokers and mortgage bankers? A mortgage banker is a professional who works directly with lenders to facilitate home purchase loan transactions. Brokers function more as middlemen. Brokers can find mortgage lenders that are willing to provide them with a loan leads; however, they do not have access to the loans themselves. Brokers sometimes charge a fee per lead but this is usually offset by the amount of work they perform on your behalf.
Are you comfortable working with a mortgage broker even if you do not have a lot of money to get a loan? Some people have a bank account just for working with the bank. However, you do not need a large amount of money to work with a broker. If you feel comfortable with the broker you choose, you will feel comfortable providing him with all the information he needs to find the right loan for you. When you do not have a lot of money available for a down payment or a big down payment, a broker might be your best option. Since you will be working directly with the lender, you will be able to build your credit score through your hard work and your solid finances.
Once you have decided to work directly with a mortgage broker, the work begins by filling out the loan application paperwork. The forms for the loan are confusing and you might feel a little overwhelmed at first. Working with an experienced underwriter will make the application process quick and easy for you. In some instances, brokers and underwriters work in conjunction with each other so you can be sure to get the best loan terms for your situation.