A bank only offers its own specific loan products. A mortgage broker works as an intermediary between you and multiple lenders (including major banks, credit unions, and private lenders). A broker’s role is to compare various rates and terms to find the most competitive deal tailored to your specific financial situation.
While 20% is the traditional standard to avoid Private Mortgage Insurance (PMI), many buyers can qualify for conventional loans with as little as 3% down. FHA loans require 3.5%, and certain programs like VA or USDA loans offer 0% down options for eligible borrowers.
In most standard residential transactions, the mortgage broker is paid a commission by the lender after your loan closes. This means you typically do not pay an out-of-pocket fee for a broker’s services. We are required by law to disclose all compensation to ensure transparency.
To assess your borrowing power, you generally need to provide:
Recent pay stubs (last 30 days)
W-2 forms from the last two years
Personal tax returns
Bank statements (last 2 months)
A valid photo ID
On average, the process from application to closing takes between 30 and 45 days. This timeline depends on the complexity of your file, the speed of the home appraisal, and how quickly you can provide the necessary documentation to the underwriting team.
A fixed-rate mortgage offers stability, as your interest rate and monthly principal/interest payment remain the same for the life of the loan. An ARM typically starts with a lower “teaser” rate for a set period (e.g., 5 or 7 years) before adjusting based on market conditions. ARMs are often better for those planning to sell or refinance before the initial period ends.
