Independent Mortgage Broker

An independent mortgage broker is simply a broker who is not associated with any specific brand or family of financial products.

The major difference between an independent broker and other brokers is that the independent broker is free to deal with a wide variety of mortgage lenders. Some brokers may have a deal with a specific mortgage lender or a financial services company associated with a specific mortgage lender.

The independent broker should be able to get you more mortgage deals and a wider variety of choices. One thing to remember is that many of the brokers associated with one brand of mortgage products are independent contractors - that is they are franchise owners who work on commission.

Independent Brokers Vs the Internet

The advantages of going to an independent broker aren’t as great as they used to be because of the internet. Years ago, a person who wanted a wide variety of mortgage choices had to locate an independent broker. Today most people will be able to find as great a variety of deals as those offered by the independent broker just by going online.

Indeed all the independent brokers you contact maybe doing is searching the web for deals. Then presenting them to you as special offers they put together for you. The broker will then charge a fee for this service that you could have performed yourself.

One thing to remember when you use a broker is that the broker makes money by charging you a fee on the mortgage. This means a mortgage arranged by a broker will probably cost more than a mortgage you arrange yourself.

Be Careful When Dealing With Brokers

Whenever you use a mortgage broker always ask to see their mortgage broker’s license because most states require mortgage brokers to be licensed. If they can’t produce a license and licenses are required in your area the broker is breaking the law and you shouldn’t deal with them.

Ask for references from past customers when dealing with a mortgage broker you don’t know. If they can’t produce references get suspicious because that’s a sign past customers aren’t satisfied. You can also check brokers with the Better Business Bureau and your state government.

Never give a broker a payment until they’ve actually arranged a mortgage for you. Legitimate mortgage brokers make their money from the mortgage itself. Unfortunately there are crooks out there that claim to be mortgage brokers but are really in the business of pocketing and collecting fees.

If the broker asks for a fee so they can arrange a mortgage or apply for one get suspicious. It might just be a racket designed to get your money and not a real mortgage brokerage.

Internet Mortgage Brokers

There are also many online mortgage brokers that sell mortgage products throughout the country. These are the websites that use mortgage calculators to see what you are looking for in a mortgage then connect you with mortgage providers.

It might pay to go online and check the offer that a mortgage broker is making you out. You might find that you can save money by buying the mortgage online.

Producing an online offer could also be a good way to talk the mortgage broker into giving you a better deal.