Chances are you have heard the term “mortgage broker” in the past. You have likely also heard both positive and negative things about this individual. No matter what you have heard, do you know what the role of a Mortgage Broker in Jacksonville FL is?
A mortgage broker acts as a middleman between a homeowner and the mortgage lender. They work directly with the bank and the consumer in order to help the borrower qualify for a mortgage, no matter if it is for a new purchase or a refinance.
How the Mortgage Broker Works
Once a borrower makes contact with a broker and makes the decision to work with them, the broker will acquire the necessary information. This will include employment documentation, assets, income and their credit report. Each of these things are necessary to determine a borrower’s ability to get the financing they are seeking.
After the mortgage broker has gathered all of the important information, they will determine what option is going to work best for the person borrowing money. This can include setting the loan amount, the loan to value amount and determining the right type of loan for the borrower. It is important to note that the borrower will have the ultimate decision making power, the broker is simply there to provide assistance.
Once all of the details are determined, the broker will then take the loan to the lender and they will work with them in order to receive approval. During this loan process, the broker will be actively communicating with the borrower, as well as the bank, to ensure that everything goes smoothly.
When you use a mortgage broker you will not ever have to deal directly with the bank or other lender. All of the correspondence will be funneled through the broker. Mortgage brokers make their money by charging an origination fee for the loan, and broker fees, typically upfront. There is also the option to acquire a no cost loan, which uses lender credit. This will increase the interest rate for the borrower, but eliminate any upfront out-of-pocket expenses.
The Cost Of A Mortgage Broker In Jacksonville FL can vary quite a bit, which means that you should ask about these expenses upfront to ensure you understand what you will have to pay, or be charged, prior to agreeing to work with the mortgage broker.
