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Using a Mortgage Broker

Using a Mortgage Broker

When you decide to purchase a home or refinance the one you are in, there are two ways you can go about accomplishing this goal. You can shop for a mortgage on your own, or contact a mortgage broker to do the shopping for you.

A mortgage broker does not lend money. In fact, mortgage brokers do not even work for lending institutions. Mortgage brokers work as intermediaries between the lender and the borrower. It is the job of the broker to assess the credit and financial situation of the consumer, than fit them into a product that best fits their needs and their budget.

A good mortgage broker will work to find you the best possible deal out there for your situation.

But be careful, brokers are paid on commission. So if they begin speaking to you in a language you do not understand, and want to put you into a mortgage program that may seem a bit risky, such as a balloon, or interest only product, than they may have their best interest in mind and not yours.

So be careful when you are shopping around. Brokers are not a bad option, just make sure you educate yourself so that you will have a good idea of the products available in the mortgage world. This way you will have a handle on what is best for you, and not necessarily what the broker or loan officer believes is best for you.

Shopping around for a mortgage on your own is also not such a bad idea. Just make sure you educate yourself about the industry before you dive in. Remember, knowledge is power.

What a Broker Does

Doing Your Mortgage Homework

Don't Let Bad Credit Stop You

First Time Home Buying

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Books about Credit Reports and Credit Repair:

Most Relevant Mortgage Books