Whether you’re a homeowner or the mortgage lender, it is important to have a relationship with a mortgage broker. The mortgage broker acts as the middleman between the borrower/homeowner and the bank/mortgage lender.
The first thing the mortgage broker will do is get to know the borrower and their assets to determine what will work best for them by analyzing income and debt. Brokers can also find them the best interest and financing options while educating them on these processes.
There are two main loan types: fixed-rate and adjustable-rate. For fixed-rate, the interest rate stays the same for the duration of the loan. Adjustable-rate interest fluctuates, starting low with potential to get fairly high. However, it is important to remember that interest rates mostly depend on financial background.
Once everything is planned, the broker will submit the loan to the lender for approval. The broker will continue to make contact with both parties to ensure everything goes as planned. Since the broker handles the paperwork and interaction with lenders, the processing time will be significantly shorter. Often times the broker will know of discounts and deals as well, to do better negotiation.
The best part about working with a mortgage broker is that they take the hassle out of communicating with the bank/lender.
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