You’ve probably heard the term mortgage brokers before, and think they are expensive consultants who are only needed for multi million pound deals. You couldn’t be more wrong. Mortgage brokers are an increasingly prominent aspect of the real estate landscape, even for low cost deals, particularly for fast home sale.
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A mortgage Broker is the intermediary between a buyer and the bank. They negotiate the loan, rate and terms to ensure adequate financing at competitive rate is available to the buyer.
Mortgage brokers perform the legwork on behalf of a buyer by conducting exhaustive researches on the hundreds of available financial packages offered by the dozens of banks in the country. In most cases, the brokers will also provide guidance during the application process. Brokers are also available for second mortgages.
Mortgage brokers are basically free to end users as they are compensated with commission by the lending bank.
Anyone can and should hire a mortgage broker if they can. However, if you are unfamiliar with the loan process and are intimidated by banks, then getting one is definitely a good idea.
Freelance workers, contractors and the self-employed should also consider hiring a broker as the latter can be very useful in matching high risk clients with welcoming lenders.
Apart from that, a mortgage broker is quite handy to have when applying for complicated deals, such as bridging loans and a second mortgage to pay the first one.
Having a mortgage broker in your corner will make loan applications much less stressful. They are very well versed with all the financing packages available in the market, as well as ongoing promotions from banks and financial institutions. They can shop around and negotiate the best rates for you (and sometimes, get free gifts which have been set aside for other loan packages).
For applicants with a complicated history, brokers will have the contacts to pair you with the right banks (and even sympathetic loan officers).
They are also incredibly useful during the loan application process. They will help to complete loan forms, advise on the required documentation, and answer any questions that clients may have. It’s almost like having a personal banker at your beck and call.
Having waxed lyrical about mortgage brokers, we still need to raise a note of caution. Do a proper research of the broker before hiring him or her. Read reviews from previous customers to make sure the agent will not manipulate customers into signing with just a single bank and does not have any conflicts of interest.