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A mortgage broker is someone who acts as an independent intermediary who brokers mortgage deals on behalf of other people or companies. A mortgage broker does not deal with the lender directly. However, mortgage brokers are sometimes referred to as loan brokers, since they are often associated with lending institutions such as banks and building societies, rather than directly dealing with individual borrowers. While there are some cases where a mortgage broker actually lends the money that the lender is holding on the mortgage, this is not usually the case.visit site for more details. Finance Broker Hobart Near Me
When a mortgage broker helps a potential borrower find a suitable lender for their loan, this is referred to as ‘pre-approval’. This is because the mortgage banker has worked out a rate (the mortgage broker’s markup) based on the prime rate, which is the rate that most banks charge their commercial customers. The pre-approved rate is then used by the potential borrower to find the best possible mortgage deal. At this stage it is still quite hard to find a suitable home loan from the banks. However, if the mortgage banker’s rate is slightly lower than the bank’s pre-approved rate, then the borrower can go ahead with the mortgage deal.
In order to help the potential borrower get the best possible loan rate, mortgage brokers earn a commission when a loan application is approved. This means that mortgage bankers earn income from the interest paid by the borrower on their loan. Mortgage brokers earn on the basis of the number of applications approved by their clients. The more applications approved by the client, the higher the mortgage broker’s commission, so the mortgage broker will be keen to see an increase in his or her clients’ loan applications approved.