Do you really need a mortgage middleman?

Do you really need a mortgage middleman?

Brokers are in essence middlemen between a borrower (you) and the lender (finance company). More times than not, you want to cut out the middleman. If you have a stellar credit score (700 and above), and you can prove your income then you are better off going directly to the lender that is advertising the best interest rate.


But if you have a low credit score (619 and below), then a broker may be your best, if not your only, option.


Mortgage brokers orignate prime loans as well as sub prime loans but most of their buisness is in the sub prime market. According to a 2004 study by Wholesale Access Mortgage Research & Consulting, Inc., and a separate 2005 survey conducted by the Mortgage Bankers Association, more than 50% of all residential loans are originated by a broker. In addition, the Mortgage Bankers Association derived that 71% of sub prime loans were orginated by a broker. More...