Mortgage brokers are the mediator between borrower and lender (any financial institution). These days, you can get mortgage service at no cost, as the lender pays commission to the broker on settlement of the home loan. The deal doesn’t get affected by such free services provided by the broker to the borrower. Lenders have their own interest of getting business through brokers channel and they offer them attractive deals for their customers. Free mortgage brokers reduce our work pressure and time and create best opportunities for you by searching best terms at a lower rate of interest.

For generating income, they will provide you with the best deal and keep you happy with their performance. If you think to go and approach the lender directly you may get higher rates. You should choose the right mortgage broker by taking references from your friends, family or your real estate agent. Real estate agents can refer few names of a broker with whom they have worked with. You may take interviews of brokers and ask them about kind of service they are providing, their experience etc. keep in mind to check their license and certificate so that you don’t get cheated. Sometimes you don’t get good deals in a market due to the restricted rules of lenders, which some free mortgage broker service operating in a market with the reputed background can help you in getting those deals easily. 

Benefits you can avail from mortgage brokers: -
 

1) Arranges everything for you thus saving your legwork.

2) Applies for a loan on your behalf with different lenders either locally, regionally, nationally according to their source.

3) They may try to convince the lender to cut down the fees or some type of additional charges.

4) Help in finding lowest rate of interest from various lenders for you.

5) Negotiates terms and condition on your behalf and make out the work.

6) Gives you full attention which lenders don’t give if we directly approach them.

7) Saves your time by communicating to lender themselves and resolves if any query is pending.

8) You may not be aware of many rules or documents required so the free mortgage broker service does it all.

9) Some lenders deal only with brokers so it becomes a plus point to work through them.

10) The broker gives proper guidance and explains all technical term and makes thing easy to understand.

Everything has two sides. Where there are many advantages of free mortgage broker service there are few disadvantages also: -

Disadvantages:

  1. May be all free mortgage brokers working for they don’t have enough source to know all credit lenders.
  2. Their first preference may be lenders offering them higher rates of commission rather than those who are giving them less commission.
  3. If many a broker submits an application on your behalf, it may get rejected when it is sent to a credit bureau for checking.​

Selecting A Mortgage Broker: -

  1. Must be registered and should have a license.
  2. Should belong to a well-known association or company.
  3. They should reveal what commission they are getting from lenders for their work.
  4. Is the broker local or have a good link outside?
  5. Make sure he is providing you all information and makes every decision transparent.

It’s very important to make sure that we opt for the best one by taking out all possible information’s about broker’s background so that our interest is not harmed. Although a free mortgage broker will help you to save our work pressure, time and money and help us to find our dream home it’s our first and foremost duty to safeguards yourself.

Published by Jack Louis