There are lots of ways to get a mortgage loan. You may go directly to the credit union or bank, use an online lender, ask a mortgage broker to do it all for you or use a dedicated mortgage company.
Gold Coast Mortgage Brokers are just middlemen who serve as links between lenders and borrowers. They gather all the paperwork and documentation and then use the lender connections to shop around on your place at some fee, you can check here for more.
Though the use of mortgage brokers has waned through the last decade, most homebuyers are considering this path once again because of the unique value it offers especially for those who are self-employed or are trading with bad credit.
What Does A Mortgage Broker Do?
A mortgage broker has a pair of jobs: Number one is to help people find the best mortgage rate and loan product for home purchase, and next, to guide one through the loan approval and qualification process.
Brokers use the arsenal of the bank, mortgage lender connections and the wholesale prices they get for the relationships.
How Does A Mortgage Broker Get Paid?
Mortgage brokers can be paid in many ways. In most times, people pay them a commission which is normally 1 to 2 percent of the whole loan amount. The commission is paid by the borrower against closing.
Some brokers also offer “no-cost” loans, which indicates the borrower pays zero fees to work with the broker. The lender will technically pay the broker’s commission at closing, although it is baked into the loan’s interest rate which means that the buyer is paying more over the life of the mortgage.
Using A Mortgage Broker
Just like with anything, there are advantages and disadvantages to working beside a mortgage broker. One of the greatest advantages of using a broker is that they will usually find lenders who are willing to accept borrowers with non-W2 income, having bad credit and different unique financial situations. The largest downside to using a broker is that it will be costly particularly on a big loan.
If you do see that a mortgage broker is a perfect movie for the upcoming home purchase, ensure your due diligence. Getting the right mortgage broker needs thorough research, but you must never pick one blindly.
Ask problems, and consider interviewing three brokers at minimum before choosing who to work with. Always remember the loan that your broker will find you are going to impact the next ten, twenty, or even thirty years of life.
Make sure that they’re knowledgeable, equipped, and connected, to give you the perfect product for your requirements, and ask family, friends, and the real estate agent for referrals. Lastly, check online for reviews.