How a Broker Can Help You
Many researchers say that buying a home is the biggest investment you’ll make in your entire life. Unless you open a decent-sized business, they’re probably right. However, whether you buy a home or start a business, you’re likely going to need a mortgage. When you walk into a bank to secure a mortgage, you’re walking into the place where the banker is most comfortable. He or she, as an employee of the bank or non-bank lender, will want to create a mortgage that yields the highest possible returns for the bank. That doesn’t always bode well for your own interests. Just imagine it like walking onto a football pitch and playing against a professional football player; this is their profession, and they’re probably very good at it. If you want to make sure you’re getting a fair deal, and the best possible deal, you need a professional on your side.
Someone on Your Side
Professional mortgage brokers are agents who understand the nature of lending. In many cases, they know the lenders themselves. Their job is to make sure they’re securing the best possible loan for their clients. They will walk you through the entire process so that you know you are taken care of at every step. First, you will contact the broker to discuss your needs; this includes discussing how much money you have on hand, how much you plan to earn in the future, and the size of the property you think you’ll need. Once you’ve figured that out, your broker will help you find several different loan options and walk you through the finer points of each one. Then, the broker will guide you through applying for a loan, so that you are sure you know the terms and conditions to which you are agreeing. Finally, many of the brokers will actually check with you afterwards to see if you are happy with your loan.
For so many things, the price is going to be the bottom line. So, how much is this broker going to charge you? Well, the very best brokers won’t charge you anything. That’s right; having a loan advocate on your side should be free. This works because lenders such as banks pay a commission to loan facilitators. It is essentially a finder’s fee as they presume that they would have not gotten your business otherwise. However, only the very best brokers have close professional relationships with lenders, which allow them to secure their commissions. When you have an agent who does not get paid a commission by the bank, he or she will try to charge you. You should not have to pay, except for in certain circumstances. For certain people in rare credit situations, it might be necessary to put down a small amount of money. This happens when someone’s credit makes it unlikely that he or she will find a mortgage in the stated price range. This is very uncommon.
It’s important to keep in mind that your broker is an advocate on your side. You deserve to have someone in your corner who understands the game.