Mortgage brokers are always the first choice for story loans. This means that borrowers have to sell the lender on their situation in order to get the loan approved. A mortgage broker can do a better job in finding financing for you in these situations than you can do for yourself.

If you choose to follow this path, it is recommended that you find a mortgage broker that holds themselves out as upfront mortgage brokers. Jack Guttentag, coined the term "The Mortgage Professor," and explained in detail in a Bankrate feature. The professor also wrote, "Want your mortgage wholesale? Try an upfront broker”.

If you have good credit, a good income and aren't looking to do anything too exotic in building or financing your home, it would be better that you don't really need the services of a mortgage broker. You can shop rates in your market on Bankrate and be able to compare lenders without filling out multiple loan applications.

Always remember that the mortgage market is divided into three pieces: mortgage origination, mortgage loans and mortgage servicing. Mortgage origination takes you to closing, the mortgage lender provides the funds at closing and the mortgage servicer manages the loan payment stream. It's common for different financial institutions to specialize in one aspect of mortgage lending and uncommon for originating lenders to keep your loan in their investment portfolios.

It is also possible that the originating lender will sell both the loan and the servicing. The Real Estate Settlement Procedures Act requires a mortgage servicing disclosure statement, delivered to the homeowner during the loan application process, which discloses to the borrower whether the lender intends to service the loan or transfer it to another lender. The statement also provides information about complaint resolution.

By M. Sese
http://realestatepress.org