Buying your dream home can often turn into a nightmare for many of you. This is especially true if you do not conduct the search and purchase the property the right way. After having spent days searching for a good home in a friendly location, the next step is to search for an affordable mortgage that will help you get the keys to your dream home. A suitable and convenient way to do it is to get in touch with a mortgage broker, who can help you all the way with the help of his contacts and expertise in such matters. Even if you do not know about mortgage brokers, you will come to know by the end of this article.
Who Is A Mortgage Broker?
A mortgage broker is basically a middleman who acts in between possible lenders and you as his client. His job is to represent you and work on your behalf while working with several banks to find a suitable mortgage deal with competitive interest rates. The best part is that mortgage brokers have a list of possible lenders with them, which helps to make things much simpler and smoother for you.
Mortgage brokers are regulated and licensed financial professionals who do most of the legwork for you. These include collecting all the necessary documents from you in order to get your credit history and also verifying your employment and income. These pieces of information are used by these brokers to find possible lenders for you within a short span of time. Once you decide upon a lender and the loan from the http://www.grapevinemortgages.com.au/ website, the mortgage broker will get in touch with the underwriting department of the bank, the title company or the closing agent, and also your real estate agent. This will help him in ensuring a smooth transaction.
How Do Mortgage Brokers Get Paid?
Most of the time, mortgage brokers are paid by lenders and sometimes by the borrowers. However, it is never both the parties at the same time. If the lender pays the broker, it is basically in the form of a commission that is around 0.5% to 2.75% of the entire loan amount. Borrowers may also opt for paying the broker, which is known as borrower-paid compensation.
When you strike a deal with a mortgage broker, it is always a good idea to ask about his lender-paid compensation rate and his borrower-paid compensation rate. Although most of the time it is the same, it is still a good habit to keep yourself informed before you hire the professional.
How Is A Mortgage Broker Different From A Loan Officer?
When you talk about loan officers in general, they are primarily employees of a specific lender. They are paid salaries together with bonuses for writing loans for their employer. On the other hand, mortgage brokers either work independently or work within a mortgage brokerage firm. They deal with several lenders at the same time and earn a lump sum amount from these lenders in the name of lender-paid fees.
To read more on topics like this, check out the finances category.