Mortgage brokers don’t lend money - they help you shop for the best loan from a selection of lenders. Since mortgage brokers get discounted rates from lenders, you can get a lower rate from a broker than if you apply for a loan directly from a lender. Online mortgage brokers also charge significantly lower fees than traditional brokers, who can charge up to 2.5% of the loan amount.
Once you apply for the loan, the mortgage broker handles all the documents and works with the lender to make sure your loan gets approved. The mortgage broker may also order a copy of your credit report, the property appraisal and the title insurance. You pay a mortgage broker at closing, when you complete your home’s purchase or refinance.
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