Are you planning on buying a house in Appleton, Wisconsin? While the prospect of creating new memories in a new home can be exciting, finding a mortgage lender and securing the best home loan can be a stressful and perplexing task. This is where mortgage brokers come in.

Many home buyers (especially those buying their first home) do not have time to call multiple lenders and filter through the specifics while applying for a mortgage, so they turn to a local mortgage broker for assistance. However, before choosing to partner with a mortgage broker in Appleton, Wisconsin, you should get a full understanding of what they can do for you, and exactly how much you will be paying in fees to your broker.

What Do Mortgage Brokers Do?

Mortgage brokers are financial professionals who do a lot of the heavy lifting. Their job is to compare multiple mortgage lenders and match you, the borrower, with the lender who can offer you the best interest rates. Licensed brokers have a vast network of lenders with whom they work, which can make finding the mortgage with the lowest rates a lot easier.

Furthermore, your Appleton, Wisconsin mortgage broker will collect required paperwork from you, review your credit records, and verify your employment and income, all of which will be used to make your mortgage application process run much more efficiently.

That’s not all!

Once you have decided on a mortgage and a lender in Appleton that fits your needs the best, your broker will work with the bank’s underwriting department, the closing agent (also called the escrow agent or the settlement agent), and your realtor to ensure that the deal runs smoothly through closing day.

How Do Mortgage Brokers Get Paid?

While some mortgage brokers in Appleton, Wisconsin may charge a one-time fee for their services, most do not charge anything to match you with a suitable lender and find the best mortgage option for you. They are usually paid a commission once the loan is settled — either by you or the lender, but never both. This commission is calculated as a percentage of the total loan amount and varies between brokers but is typically between 1% and 2% of the amount borrowed. The commission may also vary depending on the size of the mortgage, but luckily, there are no hidden fees you’ll have to worry about.

Thanks to the new regulations put in place by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), mortgage brokers must disclose all their fees upfront. Furthermore, each fee should be itemized, and the broker should be able to tell you exactly what each fee is charged for.

Even though the Dodd-Frank Act has restructured how mortgage brokers are paid, preventing you from committing to high-interest rate loans and signing off on expensive fees, 1% to 2% of a mortgage is still a substantial amount of money. Therefore, you should ensure that your mortgage broker is reputable and trustworthy so you can be confident they are choosing the best mortgage for you rather than the one that will pay them the highest commission.

Are You Looking for a Mortgage Broker in Appleton, Wisconsin?

Are you looking for an experienced and licensed mortgage broker in Appleton, Wisconsin? If so, you’ve come to the right place — you can count on the team at Compass Mortgage. Call us at (877) 793-9362 or contact us online to learn more about how we can help you make wise and informed choices regarding your mortgage financing.