Vital Connections: Financial Friends We All Need – Part 2

“When Black Enterprise unveiled its Declaration of Financial Empowerment nearly a decade ago, the idea was to create a program to help African Americans build wealth.”  The principles are solid and transcend race, gender, and ethnicity.  If you desire to build wealth, today I’m encouraging you to consider adding a second financial friend: 


What exactly is a mortgage broker?

Simply put, a broker is a middleman who helps you find a good deal on a mortgage loan.  A mortgage broker does not work for a particular bank or lending institution but rather shops around to find the best terms.

Should you be using a mortgage broker?

Well, a broker can be helpful in certain situations, especially if you have a poor credit history and are having a difficult time finding a lender.  A knowledgeable and experienced mortgage broker can find lenders who are willing to do business with you and can even help make your case when your financial history is, shall we say, less than perfect.

In exchange for doing the mortgage shopping on your behalf (and for assisting you in understanding the various terms and paperwork involved in the mortgage), a broker will get a commission. Typically, this commission will range between 0.5% to about 2% of the loan amount that you decide to borrow.

Finding and picking a trusted mortgage broker is no easy task.  Solicit references from friends, family members, and your networks.  Additionally, you can Google “how to find a mortgage broker” and sort through the links.

So, how are you doing?  Do you have a trusted mortgage broker on speed dial?

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