The Fiduciary Responsibilities of Mortgage Brokers

There are many benefits to working with a mortgage broker as opposed to a mortgage lender. One of these benefits is that the broker is generally considered to have a fiduciary responsibility to the borrower. In other words, the broker has to work in your best interest as it seeks out a loan product that fits your needs and budget.

mortgage brokers responsibility

You Get Full Disclosure Regarding the Loan Application Process

Prior to agreeing to enter into any type of loan, the broker must provide full disclosure as to its terms. It must also generally provide full disclosure as to what happens during a credit check or what will be done with any other information that you provide. As a general rule, this means that you will know the exact interest rate a lender charges, what happens if a payment is late and if there is a prepayment penalty prior to applying for a given loan.

Mortgage Brokers Must Be Transparent About Points and Other Payments

Your mortgage broker must tell you if points have to be purchased as well as the maximum number of points that can be purchased. Furthermore, a broker will need to disclose the dollar amount of any closing costs that are associated with the loan. You should receive a good faith estimate as to how much those costs are and where the money goes. Your broker should also talk about seller concessions and lender assistance that is available. (Learn about these downpayment assistance options.)

Talk With a Broker Anytime

To learn more about your rights and options as a borrower, you can talk with mortgage brokers in Las Vegas at your earliest convenience. It may be possible to talk to one over the phone or at a local office. During this conversation, you can start the process of qualifying for a loan if you are ready to do so.