Facts to keep in Mind while working with a Mortgage Broker
Once you have narrowed down the search for finding your dream house, it is time to look for the best mortgage, which would put those keys into your hands. One way to do so is by working with a mortgage broker who could guide you through the lending process from start to finish. As they are the ones responsible for the process of applying for the loans from the different lenders, negotiating the term rates and many more.
You might have heard the term mortgage broker from your real estate agent or friends or relatives who have purchased a home. But what exactly a mortgage broker is? The following questions and their relative answers would make you understand the term.
- What are mortgage brokers? They are the ones acting as a middleman between you and the potential lenders. Their job is to work on your behalf with the several banks to find the best mortgage lender like the Sun West Mortgage for you that not only provides the most suitable interest rates but even dwells as per your needs.
- How does a Mortgage Broker get paid? The mortgage brokers are either paid by the lender which is compensation from 0.5% to 2.75% of the loan amount, or they are paid sometimes by the borrowers, which is known as the borrower paid compensation. But remember they are not paid by both.
- What makes Mortgage Brokers different from loan officers? While comparing the two, we must know that the loan officers are the employees of the lender who are paid a set salary for writing the loans for that particular lender. While the mortgage brokers who work within the mortgage firm or independently, deal with the lender and earn the bulk of their money from the lender itself.
- Is mortgage broker right for me? A mortgage broker is the one who applies for loans from the different lenders on your behalf; he even looks for the competitive interest rates and negotiates the terms. Thus, by using the mortgage broker while buying a house saves your time, as the broker saves the hassle of going through the long process of buying the loan for various lenders like the Sun West Mortgage.
- How to choose the mortgage broker? The best way for choosing the broker would be by asking the referrals either from your friends or relatives but make sure that they have used that particular broker, or you can simply ask for the names of the broker from your real estate agent, that he has worked with and trusts.