Mortgage lenders usually set up their own origination department to process loan applications. This department may charge certain fees for processing the loan application and for collecting the related data and information from the borrower. These fees are calculated according to the number of loan applications processed by the mortgage broker. Do you want to learn more? Visit Home Resolution, Richmond Hill.
Mortgage brokers also deal with other mortgage lenders and can be referred to as wholesale mortgage lenders. They can grant or lend a vast number of mortgage loans, compared to the number of individual lenders. These lenders sometimes specialize in certain types of mortgages such as variable rate mortgages (VRs), fixed rate mortgages (FRMs) or interest-only mortgages (IO). Many of them also provide services such as debt consolidation, mortgage insurance (PMI), and post-closing services to help borrowers avoid any hassle after the closing.
There are many advantages and benefits of using a mortgage broker. The main advantage is that mortgage brokers have deep understanding of the processes involved in different types of mortgages and they are aware of the various mortgage lenders available. As such, brokers have good contacts with many mortgage lenders and they are better able to negotiate the best deal for the borrowers. They can also assist the borrowers in managing their credit portfolios. However, it should be kept in mind that there is sometimes a drawback when dealing with mortgage brokers.