top of page
Search
  • seanwrighthpzw

Mortgage Broker Or Mortgage Agent?






A mortgage broker is a person who works as an independent intermediary who brokers mortgage loans for other people or companies. Sometimes a mortgage broker has a large number of connections and therefore can get better deals and lower fees than the individual lenders. But there are pitfalls in becoming a mortgage broker and these are the main reasons as to why anyone would need to use the home lenders.


One of the dangers of using a mortgage broker is that not all banks have the same minimum requirements or interest rates and you may be passing up a deal which only the big banks can offer. A mortgage broker is independent and therefore does not work for any particular bank. This means if a bank comes across a deal that they cannot offer, then you may find that you lose out as the deal was only open to certain types of banks and institutions.


Another danger is that a mortgage broker could be passing on your personal information to the other lenders when you borrow the loan. Your personal information can include your credit score, where you live at this time and whether you are self employed or not. If you use a broker to find your mortgage loans then they will pass on this information to the other lenders who will then make up their own loans and may be quite different to the one that you originally applied for. If you want to check that the lender you are being told is the right one then you need to know exactly who the lender is and what the requirements are before you sign up or you could end up with a loan that you cannot afford to repay. This is especially true if the deal that you are being told is for a loan that you cannot afford to pay back. Visit this website for more info about home lenders.


There are also downsides to using mortgage brokers, one of the most common reasons being that if the borrower defaults on their loan, then the mortgage broker's commission will still be paid by the bank. This means that the bank is not losing money as the borrower carries over the total amount of the loan. Another disadvantage is that you could lose out on valuable advice from a mortgage broker which could save you money. Therefore, you should be sure to check thoroughly how much commission a mortgage broker will be earning before you agree to lend.


Before you apply for a house loan through a mortgage brokerage service you need to be aware of certain things. Firstly, you should look for a fee-based quote from the company or website. This means that you are able to request a quote for your home loan directly from the website without having to call up a dozen banks and financial institutions asking them about the best rates of interest available to you. You can save a lot of time this way and ensure that you only ask the right people. Another good thing is that some mortgage brokerage services have a free quote option where you can just type in how much you are willing to borrow, which will eliminate the need for you to make up a quotation yourself.


However, there is one thing you need to make sure you ask the mortgage broker about: the rates of interest he or she is offering you. It is normal practice for an agent or broker to offer you lower rates of interest than the banks to offer their clients. The reason for this is that an expert mortgage broker has inside tips that you do not have access to. A knowledgeable mortgage broker knows how the banks work; he or she knows the tricks to getting the best deal on mortgages and can help you secure the best mortgage rates possible. Learn more about a loan officer here: https://www.britannica.com/topic/job-description-of-a-loan-officer-2163326#.

3 views0 comments
Post: Blog2_Post
bottom of page