Orange County Mortgage Brokers

A mortgage broker is an intermediary who matches borrowers with lenders. The broker typically completes a significant portion of the paperwork and guides the borrower through the entire process. While borrowers can get loans directly from lenders, they may not be savvy enough to get the best deal, especially if this is the first time they are buying a home or business property.

Mortgage brokers are actually the largest distributors of mortgages in the world, and, in many countries, their actions are strictly regulated. Brokers are a viable option because they are in constant touch with a number of lenders and are the first to know how to take advantage of any special mortgage programs offered by lenders. This can mean substantial savings for buyers who would likely never find out about said programs on their own.

Saving with a Mortgage Broker

While working with an intermediary such as a mortgage broker might seem as if it is adding another level of cost to the mortgage process, that is usually not the case. In addition to getting the best possible mortgage rates for her clients, the broker will usually have a much lower overhead than large institutions and will be able to pass savings along to clients. Access to numerous lenders, including secondary lenders, and the option to lower rates to compete for business gives the broker an edge in the market.

Most states require brokers to be licensed and follow strict guidelines in the process of brokering a mortgage loan. This includes timelines for the disclosure of every penny the buyer will have to pay out. A good faith estimate of costs includes interest rates, fees, points, and all other closing costs, as well as the complete terms of the loan. Borrowers should be able to get speedy and accurate responses to questions before they sign.