Mortgage Broker: From Zero to Hero
What is a Mortgage?
A mortgage is a loan used to purchase a house or a real estate. The property will serve as a collateral. The borrower and lender will go into an agreement regarding the payment terms.
It is normally paid monthly which includes principal, interest, insurance, and taxes.
What is a Mortgage Broker?
A Mortgage Brokers job is a matchmaking service.
They match the borrower with a lender.
The broker will gather your financial position such as your assets and liabilities, employment records, a credit report or any other information they will require to assess your ability to secure financing.
The broker will be the one to determine a suitable loan amount from the borrower’s ideal loan amount and will submit to a lender for approval.
The broker will communicate to the lender and borrower during the application.
What are the Benefits of Using a Mortgage Broker?
A broker can save you so much time during the entire application.
All mortgage brokers have a list of numerous lenders to match the borrower with. They also have a constant contact with different lenders that you might even know about.
These brokers can also help to find the greatest possible deals that may offer a borrower a more flexible payment terms with no hidden penalties and charge.
Most of the mortgage brokers don’t charge you because they are being paid by the lender. If they do, they normally charge a small percentage, generally between 0.5% to 2% of the loan amount.
What to Consider When Using a Mortgage Broker?
You’ll find a lot of options in the market if you’re looking for a broker. But what are the things to look out before hiring one?
Although brokers are required to meet a minimum education level before becoming qualified, these requirements are quite minimal.
Fortunately, there are national guidelines that brokers must adhere and to how they should deal with their clients/borrowers.
It would be better for the borrowers to become aware of the broker’s experience and how long has this broker been in the industry.
When a broker is already recommending a loan to you, make sure you ask why it would be the most suitable loan for you and why is it worth paying in a span of years.
The Bottom Line
Mortgage brokers can help you find the perfect loan to finally get your dream house. So, make sure that you will get an accredited mortgage broker before you apply for a loan.
If you are a borrower or a broker who has a client and was rejected by a lender because of a bad credit, we are happy to help you.
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Call us on 1300 436 569! Email us at firstname.lastname@example.org or check out more articles at http://creditfixsolutions.com.au/