Monday 14th March 2016What are Mortgage Broker Fees?
Getting accepted for a loan by a bank or any credit institutions is hard because you will need to meet certain requirements and be a qualified client. Considering this, you might think of getting a service of mortgage brokers since they are experts in this matter. They will find you a lender who can give the most appropriate deal based on your profile and will do the negotiation so that the arrangement is in your favour.
If you are introduced to the roles of mortgage brokers, there are too many questions that will surely pop up in your mind. You might wonder about how you can find a mortgage broker, what will be the process, or will it cost you more if you get a broker’s service than doing it all by yourself. There can be questions that will only be answered if you consult a mortgage broker or try to get their service. Thus, it is important that you research more about this matter and look for reviews and things that might happen along the way.
Is It Better to Use a Mortgage Broker?
The answer to this question really depends on your profile, on the kind of mortgage brokers you will bump in, and the conditions of the lender. Mortgage brokers are there to guide borrowers who don’t know what to do in getting a loan. There are so many conditions, legal processes, and transactions needed to be done before a loan application gets approved by the lender so if the borrower knows little to no about these, it is nearly impossible to close the best deal.
If you research about mortgage brokers, you might find reviews that will give you an idea in case you get the service of a mortgage broker. Some may have bad experiences with but some reviews tell stories about how borrowers successfully had their loan through the help of a broker. It is better if you will read a lot about mortgage advisers or brokers before you get one because there are some, like in other professions, who take advantage of people and make them believe that they will benefit from the service of these brokers. You can also make enquiries on mortgage brokers with good reputation or have positive reviews from borrowers. You can have the confidence to trust mortgage brokers from respectable firms.
How Can I Be Sure If a Mortgage Broker is Dependable?
Like what is advised earlier, it is better to check and read the reviews given by both borrowers and lenders to the broker you want to get. It is recommended that you look for a mortgage broker firms like 1300HomeLoan because they offer a wide variety of brokers with specialisation on different kinds of loans. Apart from the convenience you can get from the firm, you can be sure with its services because it certainly avoids offering brokers who will ruin the firm’s reputation.
Commonly, brokers who work individually are the fraud ones. If they are fake, firms will not accept them to become part of their company because it will ruin their names and reputation. So to attract borrowers and make them their victims, they will work individually and act as if they are certified mortgage advisers.
To prevent this to happen to you, you must confirm if the broker you will get is licensed. Check the broker’s background and try to find any reviews from previous borrowers who had his service before. Also, before you sign on anything, it is a must that you read carefully on what is written and clarify things out, especially the broker’s terms and the fees you will pay.
How are Mortgage Brokers Get Paid?
Most of the time, mortgage brokers are paid by the lenders through commissions. But that is not always the case. Mortgage brokers have different approach and terms when it comes to their fees. If you see that the service of the mortgage broker is free of any fees, then that broker is surely paid by the lender through commission after the loan application of a borrower is accepted.
Some mortgage brokers are not paid through commissions from the mortgage lender. There are terms where brokers are paid by the borrower and their fees or rates vary. You can find a broker that has fixed rate, regardless of the type of loan you want him to arrange. There are firms where the borrower has to pay for a fixed price for the service of any of their mortgage brokers.
Apart from fixed fees, there are also mortgage brokers who charge borrowers per hour. So, the amount of money you will pay to this kind of mortgage broker will depend on how long the process of getting the loan will be. You can also encounter mortgage brokers who charge borrowers with a percentage of their loan. Commonly, they charge around 2% or 3% of your mortgage but there are some who cap fees to their percentage. Mortgage brokers can also be paid through a combination of commission from the lender and fees from the borrower.
Because mortgage brokers can be paid in many ways, you have to make sure that you clarify it to the mortgage broker before you start working with him. Read all the written agreements carefully before you sign. If the broker is paid through hourly rate, ask for an estimated span of time he needs until the loan gets approved. Doing these tips will prevent you from paying unexpected fees.
With all the threats you might encounter when getting a broker, the best option you have is to get one from a reputable mortgage broker firm. Here at 1300HomeLoan, we guarantee you that our brokers are licensed and dedicated to give you the loan you want. We also make sure that borrowers, lenders, and our brokers have clear terms and agreements to prevent disputes. Visit our website or call us so we can set an appointment for you and one of our best brokers near your location.