There is no general opinion about mortgage brokers. Some say that they will make you pay more, while others say that they are excellent choice if you want to find mortgage lender.
So how does it all work?
Well, once you, as borrower, hire mortgage broker and both of you accept the terms on which you will operate, the broker will go on and collect all info about you. This info is limited to your financial situation, how much you earn, what is the state of your credit balance and so on. Basically, all information connected with your finances is included. This is not something only mortgage brokers do, if you go to a retail bank and ask for a loan, the bank will seek same info.
When the broker gather all info he needs he will proceed with his work. To be clear, he will look for an appropriate loan amount for you, a type of loan that will suit you and so on.
Mortgage broker will do all this without any questions from you, but at the end you are the one who decided whether the deal is good or not.
Once you have agreed to the terms of the loan the broker has given to you he will find a lender who is willing to give you a loan on those terms. If everything turns to be fine you will get a loan quickly. Mortgage broker will be in constant contact with both of the parties to ensure the signing of the deal. If you work with broker you will never meet your lender, which can be a negative thing.
One very big advantage in using a mortgage broker is that his job is to find the best possible deal for you. If you set some parameters, he will contact numerous lenders to find the best one for you. In majority of the cases mortgage broker is paid only after you have taken a loan, so it is in his own interest to find a loan you will approve.
You can hire a mortgage broker to serve you as a guide throughout whole process of taking a loan. You can opt to leave the broker to do his business, or you can make him inform you about every step he does.
If a mortgage broker finds a deal he believes is the right one, but you are skeptical, you can ask him to give you a list of other lenders and their loans. If you don’t trust his judgment you can simply double-check everything he does.
One mortgage broker can’t have all lenders in their network of contacts. So, if you think that your current broker has no good lender and that all interest rates and all loans he gave you are not good, you can ask around and check some other lenders personally. Some lenders will refuse to work with mortgage brokers, so it is smart to check them while your mortgage broker checks lenders from his list.