How Do Mortgage Brokers Get Paid for Their Services?

If you’re like many people who are buying land for sale in North Florida, you’re thinking about whether you should work with a mortgage broker or go it alone. But no matter which way you decide, here’s what you need to know about how mortgage brokers get paid.

When a person works with a mortgage broker, the broker doesn’t work for free. But who pays?

In most cases, it’s you – the borrower.

Generally, most brokers charge between 1 and 2 percent of a loan’s total amount as a fee.

Now, for many people, that’s well worth the cost. A broker does all kinds of things to save you time and money, including comparing loan products from different lenders so you can figure out what’s best for you without putting in hours of homework time.

Usually, a broker will give you a wide range of loan options from various lenders. He or she will find the best rate for your needs, based on your situation (like how much cash you have to put down and a handful of other factors).

The mortgage broker doesn’t get paid until you get a loan. He or she operates independent of a bank, so you’ll get a bill once your mortgage goes through. In many cases, you can simply add the cost into your home loan – but you can also pay it up-front if you’d rather.

Are You Buying a Home or Land for Sale in Lake City?

If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.

Check these out: