David Saks: What Is A Mortgage Broker ?

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

What Is A Mortgage Broker ?


Mortgage brokers do exactly what their title says, they broker loans for lenders to the borrowers.

Mortgage brokers traditionally work what we refer to as the the wholesale lender, and they work as many of these wholesale lenders as possible in the process of trying to obtain the cheapest money.

What the mortgage broker actually does is present the wholesaler's price to the borrower to which the mortgage broker also adds their own fees in the form of fees for originating the loan, fees for any additional discount points that they might work into the loan for the borrower. and other miscellaneous fees.

Can you identify some of those miscellaneous fees?

Wholesaler's usually don't have the kind of overhead that a mortgage broker will have to run the business, so the wholesaler can discount the loan price to the mortgage broker so that the mortgage broker can add fees to the loan and still be competitive with other lenders.

One important aspect of the mortgage broker is that they may offer a very wide range of products both residential and commercial.

The mortgage broker has become a very important player in the lending arena today because of the dramatic increase in the purchasing of wholesale mortgage loans.

Because of their popularity, much more regulation is being sought to insure the quality of loan origination through the mortgage broker.

We hear all too frequently these horror stories about borrowers going to shady brokers who make these wild promises about ridiculous loans that don't exist and collect bogus fees including nonrefundable application fees for the loans.

Even worse than that are these incredibly tragic stories about  borrowers dealing with mortgage brokers who didn't know enough about mortgage lending to see throught the loan process correctly.

The results, because of the mortgage broker's inexperience, have dealt severe blows to unsophisticated borrowers.

Some mortgage brokers have even gone so far as to take loan applications without knowing whether or not they can find a place for the loan.

The problem with this creepy scenario is that the fact that the loan can't be placed isn't revealed to the borrower until the last minute after the broker has exhausted all of the options to try and secure the loan, and in reality hasn't got a lender to work with.

The borrower has lost valuable time.

Check out the broker real carefully before making any loan applications.

The best mortgage brokers can be your life line to a real healthy financial situation ,making your future a great one and will help you sleep better.

The worst mortgage brokers can destroy you and your family and cripple you financially.

What are your experiences with mortgage brokers? Mortgage brokers, I invite your comments.

David Saks

Time&Temp Memphis

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Comment balloon 0 commentsDavid Saks • May 26 2008 01:56AM


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