Monday 14th March 2016Mortgage Broker: What You Need to Know
Finding someone who can lend you money is nearly impossible if you don’t know where to go and what to do. Perhaps you will need to loan from a bank or any lending companies so you can have your dream house, but you don’t know which of them will give you the best offer and the easiest to process. In this case, you will need a mortgage broker. What is it and why do you need to find one?
What is a Mortgage Broker?
When you do not know anything or anyone who can help you find a mortgage lender, a mortgage broker will be a great assistance for you to find the best lenders and deals in the market. A mortgage broker is the one who will act as the middleman between you, the one who will borrow a certain amount of money, and the bank or mortgage lender, who will provide the money you will borrow.
Since the competition between banks and lending companies becomes stricter when it comes to loaning, mortgage brokers become more in demand. Lenders see a mortgage broker as an opportunity so that their mortgage products will reach potential customers (borrowers) and get sold. While they are most in demand, mortgage brokers become prevalent in rich countries like UK, USA, and Australia.
Is a Mortgage Broker Different from a Mortgage Lender and a Loan Officer?
Many are confused between mortgage brokers, mortgage lenders, and loan officers. Some think that they are just the same, but that is not true. The difference between them is their roles when you loan. Mortgage lenders are the banks or any lending institutions that will fund the money you will borrow. Of course, they will not just lend you money that easy. To make assurance that you will pay your debt, a written statement or a note that will act as the evidence that you borrowed money from them and you have the obligation to pay it is received by the mortgage lender.
The role of loan officers is a little bit tricky. Loan officers are either from the mortgage lenders or mortgage brokers. Their roles include finding customers or borrowers, selling mortgage products, and advising customers about what offers are the best for their status. With that said, loan officers are those who do all the job, as they are employed to do the role of mortgage brokers. There are also cases where loan officers are from the mortgage lenders and find borrowers who will directly get a loan. So if there is a mortgage broker company with only one person who does the job, then that person is the loan officer and the mortgage broker.
There is a big difference between the roles of the mortgage lender and the mortgage broker. Mortgage brokers are not those who lend the money. Instead, they look and offer mortgage products of lenders to borrowers. On the other hand, as the roles of loan officers and mortgage brokers can overlap, both of them cannot be equated to the roles of the mortgage lender.
What are the Benefits in Getting a Mortgage Broker?
Getting a loan was never easy. You will need to understand a long list of terms and conditions, a couple of laws about legal loaning of money and other transactions. The process is indeed laborious and if you are a beginner in this field, there is a high chance that you will get lost during the process because you are not familiar with it. Some of the functions of mortgage brokers are to simplify and assist you with the transactions needed to be done to get your loan. They are in charge of the paper works and rearrangement of the process to make it easy for you. When you get the service of mortgage brokers, they will guide you from the start until you get your loan.
When you hire mortgage brokers from a firm or from one-person business, all the work will be done by an expert. Mortgage brokers or loan officers from the firm will represent you when negotiating with lenders. As they study your personal profile, they will look through all the banks and lenders they have in their contacts, and see which of them has the offer that will best fit your profile. You may think that you don’t need to hire a mortgage broker because you can definitely shop for loan products all by yourself. But getting into that process is really difficult and time-consuming. In addition to that, you might only find deals with retail interest rates, which are higher than wholesale interest rates that mortgage brokers get.
Is it Advisable to Get a Mortgage Broker When Buying a House?
If you want to buy a house and you opt to loan for it, it is definitely advisable to get a mortgage broker. When you are introduced to the process for mortgage application, you will understand that you need assistance and advice from the experts. You may argue that you can always ask the mortgage lender about the process and the best deals for you. But think about this, businesses that offer products will always try to give you deals where they can earn more, not where you can save more. This will not happen if you decide to hire a mortgage broker because aside from finding the right mortgage lender, they will also negotiate with the lender to give you the best agreement for your status.
Where to Find Mortgage Brokers?
Now that you know why you need a mortgage broker so you can finally buy your dream house, the next step is knowing where and how to get one. 1300HomeLoan is one of the best companies where you can find reliable mortgage brokers, who will surely make your loan process easier. You can browse on our website to see our long list of mortgage brokers near your area. You can also make enquiries online or call us to make an appointment with one of our brokers who you think is the most suitable for you and your location.