All That You Need To Know About Mortgage Brokers
Mortgage brokers are the middlemen between you and a lender; they have access to multiple lenders and can assist in finding a loan that best suits your needs. In some cases, you may get a better deal with the broker than if you went direct with the bank – but not always.
Here is a list of what you need to know about mortgage broker Barrie before deciding which one to deal with.
(1) How Much Do They Make On The Loan
Mortgage Broker Fees vary from lender to lender,and some may charge a percentage of the loan amount, and others will charge a flat fee per loan. This fee may be added to the loan amount, and some brokers will charge more for loans that are not taken out through their office, while some do it on a sliding scale. They get paid more if you give them your business regardless of whether or not they find you a better deal.
Sometimes they work on commission that means their only incentive is to get you the lowest interest rate possible. It is the best scenario as it means they will be pushing for you to get a better deal than anyone else on your behalf. Buta mortgage broker in Barrie can work on commission only if they find you a loan at their bank. It means that unless your loan is processed through them, any fees or percentage of the loan they receive will come out of your pocket.
(2) Are They Loyal To Their Clients Or The Banks?
Brokers work for you, not the banks, but to get paid, they have to provide lenders with the opportunity to finance you. If you are being pressured into taking out a loan from them or their bank at any cost, then chances are they are not working for you.
(3) How Do You Know How Much You Can Afford?
Get an idea of how much you can afford and what sort of repayments the loan will involve. If this is your first home, speak with a financial planner to get accurate figures on repayment options and budgets. Please don’t rely on the broker to do this for you, and they are more interested in getting your business.
(4) Does The Broker Know More Than You Do?
Mortgage brokers earn their living by finding people loans, and if they find out that you’ve had a loan rejected with another lender through your own doing, then they can’t sell you any other loan. So in many cases, they may not be completely honest with you about how much you can borrow or if the loan is appropriate for your needs. Suppose you are desperate to buy a house though they will take advantage of this and bombard your bank looking for an answer until they find one that suits their quota.
From this list, you can tell that mortgage brokers are not all created equally. Some do have your best interests at heart while others are out to make a quick buck; if you are unsure how they operate, then ask them for some references of people they’ve helped buy homes in the past few years and contact those people.