6 Facts About Working with a Mortgage Broker
There it is. You’ve found the perfect piece of property, you can already see yourself growing old in that house, and all the memories you’ll share with all your loved ones. So where do you go from here? Check out our six facts about working with mortgage brokers!
What Exactly is a Mortgage Broker?
A mortgage broker basically brokers your mortgage between the lending institution and yourself. They serve as the middleman between you and potential lenders and help you pick out the right mortgage for your needs. Mortgage brokers are financial professionals that are licensed and regulated. They are usually connected with a good network of lenders; this allows them to present you with a wide variety of options to finance your dream house. In short, they make your mortgage shopping easier.
Choosing a Mortgage Broker
Choosing a mortgage broker is an important step towards getting the house of your dreams. Make sure you consult with people that you know that have dealt with mortgage brokers before; your real estate agent should also be able to link you with a good mortgage broker. Learn about your potential broker and meet with them to discuss how they can help with your needs.
The Benefits of Working with a Mortgage Broker
Working with a mortgage broker provides you with several conveniences. They do most of the legwork from dealing with the paperwork, gathering records needed for your mortgage, and ensuring that documents are good to go. They offer you the accessibility that you may need and save you a lot of time going backwards and forwards from one institution to the other.
However, one of the biggest benefits that a mortgage broker provides is their connection with a variety of lending institutions. This allows them to match you with a lender that can provide for your specific needs. A lot of mortgage brokers also have established relationships with many banks and due to this you could find some fees waived at times. A mortgage broker can also help you consolidate all your debt into one home owner mortgage, thus cutting your monthly installments and interest rates drastically. Flexi credit loans and cr cards usually carry a hefty interest rate, like 9% or 10%, while mortgages can go low as 5% or 6%, a huge savings!
The Differences Between a Mortgage Broker and a Loan Officer and True Broker
When acquiring the services of a mortgage broker make sure you link up with a true broker. Some companies can actually be branch offices for a lender and are not true brokers. This may cause you some difficulty in the long run should you encounter problems. A mortgage broker may be able navigate around these waters and make your loan work.
What’s the difference between a loan officer and a mortgage broker? There are loan officers who work for mortgage brokers but not all are mortgage brokers. On the flip side, all mortgage brokers are loan officers.
How Are Mortgage Brokers Paid
A mortgage broker is a sales professional that is paid a commission based on the loan you’ve acquired from utilizing their services. That means they get paid for “writing” the business by the institution providing the lending. The amount that they receive varies but is usually around 2% of the loan amount. These payments are made as part of the closing costs. As a buyer you usually pick the “Lender Paid” option, but there are exceptions to this.
Other Quick Tips!
- When you a get referral, ask if the person has actually utilized the services of that particular mortgage broker in the past.
- Make sure you take your time looking for the best mortgage broker, check out crownmoneymanagement.com.au/mortgage-brokers/ for their listings.
- Develop a good relationship with your mortgage broker they will always try their best to make the loan process easier, beneficial and affordable for you.
So there you have it, a couple of quick tips about working with mortgage brokers that should help you. Congratulations, you are even closer to your future home!