Like any profession, it’s very easy to develop preconceived ideas about mortgage brokers. Once some people hear the word “Mortgage,” their minds start racing and they feel as though anyone involved in the process is only there for their own gain. Of course this isn’t the case, so we’re debunking some of the most common myths about mortgage brokers.
Mortgage Brokers Deal with One Lender
It’s true that some brokers work for a bank or single lender, but independent mortgage brokers don’t. An independent broker may work for a mortgage brokerage or have their own independent brokerage. The difference is that a broker who works with just one lender is obligated to use the products and services of that specific lender, while an independent broker can access the entire market to get clients the best deal available.
Mortgage Brokers Deal with Questionable Lenders
Another myth is that mortgage brokers deal with shady or questionable lenders to find you those great deals. Most of the time, your mortgage ends up with one of the major lenders that have become household names.
It’s the ‘shopping around’ element that enables mortgage brokers to get you such a good deal! They also have access to smaller lenders you may not be familiar with, but their lack of publicity shouldn’t make them questionable in your eyes- Many of these small lenders have been around for decades!
All Mortgage Brokers are Fully Licensed
It’s easy to see an ad for a mortgage broker and assume that they’re fully licensed and have the same qualifications as other brokers. This isn’t always the case. Ask your broker if they are licensed, if they own the company or work for it, and how many years they’ve been in the business. It’s also good practice to find out if they have experience with the same type of mortgage you’re looking to get.
Only Use Mortgage Brokers If You Have Bad Credit
Some people believe that mortgage brokers are only for those people who have credit issues. You can certainly access the skills of a mortgage broker if you have bad credit, but it isn’t a requirement. Most people who use mortgage brokers are the same ones who go to the big banks. They simply recognize that a broker can save them time and money and are the logical choice for the job.