Before hiring a mortgage broker, you need to learn what a mortgage broker is, know where to find a mortgage broker, learn the roles of a mortgage broker, understand the benefits you will gain from getting one, know their qualities, and find out about their pay.
Finding the right deal to finance your home entails proper evaluation of the different options you have, as well as a good number of lending institutions to choose from. A mortgage broker will help you do this task a lot easier. Learning the following things about a mortgage broker will help you get things running smoothly and eventually help you find the best mortgage deal.
Learn what a mortgage broker is
A mortgage broker is a mortgage agent who acts as an intermediary between you, as the borrower, and the lender. He is either self-employed or works for a brokerage company and has connections to different borrowers. A mortgage broker does not directly work with a specific lending institution, but instead, searches for different mortgage products from different companies, which he will present to you depending on your conditions, your needs, and your budget.
Know where to find a mortgage broker
The most reliable way to find a mortgage broker is to ask for recommendations from relatives and friends who have tried the services of a mortgage broker. Another way is to search the Net according to your location, as most brokers have websites. For example, type in “perth mortgage broker” in the search box if you are from Perth. Finally, you can go through your local directory and search for brokerage companies or individuals listed under mortgage brokers. Be sure you read reviews to ensure excellent assistance from a preferred mortgage broker.
Learn the roles of a mortgage broker
The following are the basic functions of a mortgage broker:
*A mortgage broker shall present various mortgage products from different institutions that suit your needs and your condition. It is, therefore, his role to first know exactly what you need and what your economic condition is so he will know what products to present to you.
* He must have a wide range of mortgage products from many lending institutions, since his clients have different needs. He should not be recommending only one product to you. Chances are, his commission will be higher with that particular product, even if it is not what is best for you. Make sure you have different options to choose from.
* Your mortgage broker must be able to discuss well the nature and terms of each loan, how interest rates are derived, and other conditions of the loan.
*Finally, he must adhere to the Privacy Act to protect the information you have given him.
Understand the benefits you will gain from getting one
The advantage of hiring a mortgage broker is that you will be saved from doing all the search from one institution to another about mortgage loans and directly give you loan options to choose from based on your needs. He can also give you some sound advice as to which loan will be most fitting and helpful to you. Finally, a mortgage broker can further assist you with other concerns even if the loan contract has already commenced.
Know their qualities
To know you have chosen an authorized and reliable mortgage broker, you must check for his license. Make sure he has a license to operate in your state. There are also some brokers who are authorized to operate in more than one state, especially one who is employed in a brokerage company. Aside from being authorized, a licensed broker also understands the entire process of mortgage loans, which is very helpful not only when choosing a particular home loan, but also when transaction is being processed. Experts also advice that your mortgage broker must have a professional indemnity insurance for your protection in cases of legal issues.
Find out about their pay
Most mortgage brokers do not ask for an upfront fee for their services. They get paid by commission. If they ask for a fee from you, do not hesitate to ask about it. For most mortgage brokers who work in a brokerage company, the company helps them find clients and lenders, but they have to split their commission with the mortgage company. On the other hand, self-employed brokers find clients and lending institutions on their own and they get to keep their commissions all to themselves.
With this information, you will be more informed about dealing with a mortgage broker and make the most of what one can do for you. Remember, paying for your home can take up to 30 years, so make sure your broker helps you pick the right mortgage product that works perfectly with your needs and your budget.