Two-thirds of people do not really understand what the role of a mortgage broker is, it’s only a third of people who understands what it is that mortgage brokers do and so I’m happy to let you know all about it.
Who is the mortgage broker?
A mortgage broker is an intermediary between the borrower and the lender, so they are similar to lenders in that they collect all of the supporting information from clients, so that would be income information, they will also take a look at credit history, down payment, net worth and the type of property they’re looking to acquire or if they already have a property, how to refinance it. If you are looking to take equity out, so by having all of that information, a broker works in an advisory capacity to take a look at what’s available in the entire market to meet your needs.
So it’s very much an advisory and one-on-one relationship that mortgage brokers have with their customers so as to save them some time and hopefully save them some money as well. That is a very important component of what they do, by being a one-stop-shop they are able to then look at saving time and saving money, not only now at the transaction but also long-term as professional advisors, keeping an eye out on their account for the lifecycle of where they happen to be with their borrowing.
So why should you use a mortgage broker as opposed to just going directly to the bank?
The majority of consumers typically would go to their financial institution, roughly a third would go to their branch, a third will use their mobile mortgage specialists and the third will use mortgage brokers, so we’re seeing the tide continuing to turn towards using mortgage brokers. Mortgage brokers are more than just one series of products: a financial Institution you know as well-intentioned as they are can really only offer their suite of products. Mortgage brokers usually have different lenders and hundreds of products, so no matter where people happen to be in their life cycle. With mortgage brokers, you can have a sample of possibilities to explore and to make sure you are getting the absolute best rates in terms not only now but for the long-term plan.
So with mortgage brokers, you can save time, money and you can get a better selection than you can get at a financial institution directly and your broker is there for the long term to help you sort of plan your future financially. A mortgage broker really contributes to people planning their futures and securing their financial futures and hopefully, this article is of assistance to you in helping you to understand the role of the mortgage broker in a house purchase.