Mortgage brokers are intermediaries who are independent of banks or other financial institutions that are actually going to lend you the money to buy a home. Mortgage brokers do not have any money of their own to lend nor can they approve or deny your loan application. They do however, originate/process loan applications.
One usually chooses a mortgage broker because they can help you shop around, various mortgage lenders. Many mortgage brokers will tell you that they can get you the best deal possible on a home loan. Another possible benefit of using a mortgage broker is that they could explain the need the ambiguities of the multitude of loan choices that are available to you. They can also help you understand and fill out the various paperwork required to get a home loan. Sometimes these services that are mortgage broker can provide valuable. But then again there are times when these assertions of what a mortgage broker can do for you are not quite fulfilled.
Another reason why you might consider using a mortgage broker to help you get the right mortgage loan is if your credit history and credit ratings are somewhat damaged. A good mortgage broker can help you polish your loan application and segregate the few lenders that may offer you a loan based on your personal financial situation. Brokers can also help if lenders don’t want to make loans on unusual properties that you may be wanting to buy such as a corporative apartment, shared ownership housing and tenancies in common. If you have chosen a difficult loan to take such as get approved for 90% loan to value ratio, mortgage broker could direct you to such a lender who deals with high LTV loans.