Mortgage
brokers: What
they do and
how they help
homebuyers
What is a mortgage
broker?
A mortgage broker acts as a go-between,
matching borrowers with mortgage lenders. If
you are purchasing a home or refinancing an
existing one, a broker can help you find the
best mortgage option for your needs. Brokers
work with everyone in the lending process,
including real estate agents, closing agents,
and underwriters.
Mortgage broker vs. lender
vs. loan officer
A mortgage broker matches borrowers with
potential lenders and loans. A mortgage lender,
on the other hand, is the party responsible for
providing the funds to the borrower to buy a
home. Finally, a loan officer is employed by a
bank, credit union, or other lender, and is
limited to providing only loan products their
employer offers.
How do mortgage brokers
work?
A mortgage broker in San Diego acts as an agent
for a borrower, working with many lenders to
find the best mortgage for their situation. Some
lenders only work “wholesale.” It means they
work exclusively through other professionals and
not directly with the public. Therefore, to have
access to their mortgages, a borrower must go
through a broker.
How much does a mortgage
broker cost?
The commission of a mortgage broker in San
Diego can vary, but it usually ranges from 0.50
percent to 2.75 percent of the loan principal.
Federal law caps broker fees at 3 percent and
requires that they not be linked to the interest
rate of a loan.
Why use a mortgage
broker?
There is no reason not to work with a mortgage
broker. Borrowers who use the services of
broker get the benefit of a more personal
experience and having a licensed professional
do the legwork on their behalf.
Thank You
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