Could someone please tell me where a Pa mortgage broker get's his money from?
Could someone please tell me where a Pa mortgage broker get's his money from?
They claim that they can shop around and get the best rate on the closing
or lock date, instead of your picking the lender directly. I'm sure they're
not doing this out of the goodness of their heart, and I gotta beleive
that I'm paying for their service. They seem like a "middle-man" to me who
could be driving either the rate or closing costs up.
I grew up in a small town with several "independent" insurance agents.
Those agents could sell Allstate, State Farm and many other types of
insurance. It was not very effective for each of those large
companies to put its own salespeople in such a small town, so they
licensed the "independent" agents to sell their products. The only
costs then incurred by the large insurers was a commission paid to the
independent agent. Much cheaper than paying salaries, benefits and
office rent to a team of their own staff.
This is the exact description of a mortgage broker, and also a good
description of why we actually keep the delivery costs of mortgages
down. I have about 28 large mortgage banks that have authorized me to
"sell their products" (i.e., lend their money). So I can "shop" among
those banks to find the best deals. I am paid a commission on a
per-loan basis by these wholesalers.