What comes to your mind every time someone mentions the word “broker” or “mortgage”? A broker is a business person who buys or sells for their clients in exchange for a commission, while on the other hand, a mortgage is a conditional conveyance of property. Mortgage brokers are therefore the middlemen who broker mortgage loans in the place of a business or an individual. History indicates that banks and other lending institutions have always sold their own products, but due to the competitive nature of the real estate industry business, the institutions have changed their strategy and settled to using mortgage brokers as part of the marketing team to enhance the selling capabilities. Read more http://www.consumerfinance.gov/askcfpb/1919/am-i-allowed-to-negotiate-the-terms-and-costs-of-my-mortgage-at-closing.html
Mortgage brokers help to lead you to a bank or a direct lender that will offer a great deal on a mortgage to a business or an individual seeking to find a loan for real estate. These brokers in most instances are regulated so as to ensure that there is compliance with the banking and finance laws subject to a country. As a mortgage broker, the nature and scope of the activities vary from offering regulated financial advice to limited jobs of sales.
Below is a detailed account on the activities of mortgage brokers and ways on how you can negotiate with them for better deals:
Marketing of mortgage loans from the various financial institutions so as to attract clients, talk to them and negotiate with them better and fair deal for mortgage.
The brokers do assess and evaluate the borrower’s conditions, via a credit history form and help in establishing the affordability of the client in paying the loan.
Brokers take the step to assess the market so as to find out which mortgage will best fit the client needs.
The mortgage brokers do help in gathering all the necessary documentation that is needed for completion of the processes such as the payslips and bank statements and help in filling the application forms.
They also do explain the legal processes involved in the business.
Therefore, as a potential client it is wise that you first search the Internet, local press or consult colleagues in a similar situation, so as to be aware of the various mortgage brokerage companies in your area and to check out their services, as well as how they do conduct business. Due to the competitiveness in this real estate industry, it is best to obtain the best brokers who can negotiate better deals for you. Mortgage brokers are more competitive today due to their access to wholesale capital markets and pricing discounts. Another advantage of the brokers is that they are in the position to obtain loan approvals from the largest secondary wholesale market lenders. They therefore have the primary experience in this field that can lead to striking of better deals. As a caution, be aware of fraudulent brokers. There are many great mortgage brokers around, but there are some people can fake or falsify information and other documentation, to try and get money out of you. This can lead to disqualification and cancelation from being given a loan. Thus, observation is key to helping choose honest and diligent brokers in the business.