Mortgage Brokers Who is a Mortgage Broker? A mortgage broker is a licensed individual or company who obtains home mortgage loans for borrowers by selecting the best available program at the best available rate. This includes finding customized bad credit mortgage loan programs for persons with less-than-perfect credit situation. There are specific educational, insurance, net worth and experience requirements to become a mortgage broker in order to carry out mortgage lending. Why use a mortgage broker?In competitive mortgage markets many lenders use an array of rate offers and other incentives to attract customers. To many consumers, due to their infrequent purchases of mortgage products, the mortgage market may appear confusing and somewhat daunting. A mortgage broker can guide them through the process of selecting a suitable mortgage and offer mortgage and property related financial advice. For borrowers with poor credit records, or other unusual circumstances, finding a lender may be difficult. A mortgage broker, having specialized knowledge and multiple lending sources, will normally be a valuable resource in obtaining financing. What is the task of a Mortgage Broker? The nature and scope of a mortgage broker's activities varies with jurisdiction. For example : Anyone offering mortgage brokerage is offering a regulated financial activity; the broker is responsible for ensuring the advice is appropriate for the borrowers circumstances and is held financially liable if the advice is later shown to be defective. In other jurisdictions the transaction undertaken by the broker may be limited to pointing the borrower in the direction of an appropriate lender and no advice given. Therefore the work undertaken by the broker will depend on the depth of their service and liabilities. Typically the following tasks are undertaken:
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