The world is evolving with the lightning fast speed and there is nothing that no one can have now. The most common example is the loans that enable everyone to have what they need or ever they dream of. Whether you are in the pursuit of building your dream house or want to own a car for your family you don’t need to wait for long to save that much of money. The loan will get you the things that you were dreaming to have for a long time now. But, there are more chances either you end up with a bank or direct lender for loan and will be getting less profitable deal with an hefty interest. This is where the mortgage broker and consulting firms come in handy. Here is what you should know about the mortgage broker and how you can avail the benefits via them.
What is a Mortgage Broker?
A mortgage broker is basically the middle person dealing with the borrower and the lender. The home buyer’s finances will be assessed by the mortgage broker. The mortgage broker will be responsible for assisting the borrower in finding the best value for their products and also take care of the pre-approvals, completing mortgage applications, preparing all the required documentation along with best advises on the mortgage products value. The brokers counsel the borrowers in order to sort out the problem restarting the borrowers from qualifying a loan.
In addition, the brokers also assist the browser in selecting the best loan meeting all their needs and requirements. For successfully carrying out the mortgage loan process the broker takes borrower through all the legal provisions stated by the government and lender’s agreement. There are number mortgage broker and consulting firms available for the people seeking a suitable loan against their mortgaging products. There are different types of mortgage brokers available in the market depending upon the needs of the borrowers. The commercial mortgage brokers deal with the non-residential areas and help in acquiring the mortgage loan for commercial properties. Whereas there are retail loan brokers or brokerage firm that offers account services to the number of individual investors.
How mortgage brokers make money?
The Mortgage brokers or the consulting firm works differently than the bank and they need to be licensed in order to provide their service. The commercial mortgage brokers do charge for their service, their fee is either paid by the borrower or the lenders and it could vary between 1 % or 2% of the loan. The broker will disclose all the fee and charges they will be charging you for the services. There will be no undisclosed or hidden charge and everything will be acknowledged upfront to the borrower. The fee amount could vary depending on amount or size of the loan.
Some new regulation under Dodd-Frank Act
- Brokers can’t put hidden charges
- Broker’s fee cannot be tied to the borrower’s loan interest rate.
- Brokers can not charge you for steering towards an affiliated company.
- Brokers cannot be paid by both lenders and the borrowers.