What is a mortgage broker? A mortgage broker Kansas City is an intermediary who brings mortgage borrowers and mortgage lenders together but does not use their own funds to originate mortgages. A mortgage broker helps a borrower connect with lenders who represent the best fit in terms of the borrower’s financial situation and interest-rate needs. The broker also gathers paperwork from a borrower and passes that paperwork along to a mortgage lender for underwriting and approval. A mortgage broker should not be confused with a mortgage banker, which closes and funds a mortgage with its own funds.
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The job of a mortgage broker Kansas City: He/she sees all the lenders and their terms. Then he matches your situation with a lender who is most likely to approve your mortgage. That can save a borrower time during the application process and potentially a lot of money over the life of the loan.
When consumers get ready to buy a house or refinance a home, a first stop is often to a loan officer in a local bank or credit union. A bank loan officer offers programs and mortgage rates from a single institution. A mortgage broker, by contrast, works on a borrower’s behalf to find the lowest available mortgage rates and/or the best loan programs available through multiple lenders. However, the number of lenders a broker accesses is limited by his approval to work with each lender. That means borrowers are generally best served by doing some of their own legwork to find the best deal.
Investopedia says, “Borrowers should search online reviews and ask for referrals from real estate agents, friends, and family to find a mortgage broker who has the right credentials for the borrower’s level of experience. It’s important to work with an individual whom you trust and who provides good service.”
A broker doesn’t get paid unless a loan closes, encouraging brokers to work with each borrower on a more personal level. If a loan originated through a broker is declined, the broker applies to another lender.
Some lenders work exclusively with mortgage brokers, providing borrowers access to loans that would otherwise not be available to them. In addition, brokers can get lenders to waive application, appraisal, origination, and other fees. Big banks work exclusively with loan officers and do not waive fees.
Finally, when searching for a mortgage, don’t forget to ask your reral estate agent. Ask your agent for the names of a few brokers that he or she has worked with and trusts. Some real estate companies offer an in-house mortgage broker as part of their suite of services, but you’re not obligated to go with that company or individual.
We buy and sell properties throughout the greater Kansas City area. We specialize in buying distressed homes, then renovating and reselling them to home buyers and landlords. Terra Firma Property Solutions: excited to be part of the economic rejuvenation of Kansas City and its surrounding areas.
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