Online Mortgage Broker

A mortgage broker is an individual or service that helps people get mortgages. A good way to think of a mortgage broker is as a person whose job it is to arrange mortgages for people.

A traditional mortgage broker will take applications from individuals and submit them to a number of different mortgage lenders to see if they can get approved. The mortgage broker will then present several mortgage offers to the individual to see which one they want.

An online mortgage broker does much the same thing except they do business through a website. The traditional mortgage broker took paper mortgage application and faxes or mails them to lenders. The online mortgage broker accepts the information directly though its website.

Many of the online mortgage brokerages are simply the computer systems used by mortgage lenders made available to the public. The online brokerage is increasing its business by allowing customers to submit applications directly.

How an Online Mortgage Brokerage Works

An online mortgage brokerage asks customers for some very basic information such as the amount of mortgage they want, the amount of interest they want to pay, their geographic location and the amount of down payment they want to pay. This information is entered into an online tool called the mortgage calculator. The mortgage calculator then computes the amount of mortgage the person can qualify for the interest they can pay and even the payments they will make.

The online broker then submits the quote to several different mortgage lenders in an attempt to see which will give the customer the best deal on a mortgage. This process is simple and it is fairly fast.

One of the biggest advantages to using an online mortgage broker is that a person can get quotes from several different lenders at once. This is the way a person can get the best deal possible on a mortgage. 

How to Get Online Mortgage Brokers to Work for You

The way to get the best deal possible on an online mortgage is to use several different online mortgage brokers at once. There is nothing to stop you from going to several online brokers and asking for quotes.

This way you can compare mortgage quotes from dozens of different lenders at once. By doing this a person can know what they should be paying and what mortgage deals they can qualify for. It is the best way to get the cheapest mortgage possible.

What Not to Do

There are a few things that you should never do when using online mortgage brokers. Never pay any sort of fee or charge up front to an online mortgage broker.

A legitimate mortgage broker makes its money by adding a charge or commission when the mortgage is issued. Any mortgage broker that wants you to pay a fee before you get a mortgage is a scam. There are many fraudulent mortgage experts online who only want your money. These people have no interest in helping you find a mortgage.

You should also never provide any information besides the amount of mortgage you want, the interest rate you want, the mortgage terms you want and your geographic area when you ask for a mortgage quote. Any service that has more information about you can use it to steal your identity or apply for a mortgage in your name that you don’t want.

Don’t provide your information until you’re actually ready to apply for a mortgage.