Hiring a mortgage lender could be like a visit to a local Farmers’ Market. Plenty of lenders will be selling broccoli. A mortgage broker in Kitchener takes a different approach.
It may seem a “cutthroat” business but a mortgage banker and a mortgage broker can both help a borrower get a home or business loan. Here is how that works. A mortgage banker, unless they are in business for themselves with their “credit line” to fund loans, will be working for a bank or credit union which actually provides you the funds for the loan. On the other hand, a mortgage broker in Kitchener doesn’t work for a bank or represent other institutions. They hustle around contacting many banks to put all the pages together search to get you the best offer for your budget in order to. In other words, folks, this type of broker is the “middleman” between you and the lender.
When a mortgage broker in Kitchener hits the street to work for the clients, they will be in contact with banks as well as various other mortgage lenders within the district in order to put all the pieces together; your banker can’t do that. How does the mortgage broker make their money? Well, unlike the lender working for the bank who can only make loans for the employer, a mortgage broker represents the borrower more than the lender. A broker is generally compensated by the loan funds; sort of a commission. Although some brokers will still do work on a “flat fee” which is a percentage of the value of the loan.
Explaining on how these jobs are defined would look like this:
* Mortgage Broker: An independent real estate professional who specializes in the origination of mortgages.
* Mortgage Bankers: Are usually an individual company that originates, sells or services a loan secured by mortgages.
The benefit of working with a mortgage broker is that they do all the work on the clients behalf. They also compare wholesale mortgage rates from large numbers of lenders, making it easier for you to decide on which is the best for you to take.