So you’ve narrowed down your list of prospective homes that you want to own, and now you’re searching for the best mortgage to finally put the keys of your dream home in your hand. One way to do it without having to encounter any problem is by working with a mortgage broker South Australia. This professional can guide you through the lending process from start to finish, making sure that you get the best deal.
If you can recall, you’ve probably heard the term “mortgage broker” from your friend who’ve also bought a home, or your real estate agent. But what exactly is this person and what can he or she do that’s different from other related entities like a bank or a loan officer? In this article, we’re going to show you that by introducing some of the most common facts about mortgage brokers.
What is a Mortgage Broker?
Let’s start with defining a mortgage broker South Australia. This professional acts as the “middleman” between the client and potential lenders. It’s the job of your mortgage broker to work with several banks on your behalf to find prospective mortgage lenders offering competitive rates that best fit your needs. These brokers have a well-developed list of lenders that they work with, which can make the entire process more straightforward and less of a hassle for you. In addition, mortgage brokers are also licensed and regulated financial experts. They do the bulk of the legwork and use the information to apply for good loans in a short time frame. Get to know more about them by clicking this link.
How Does a Mortgage Broker Get Paid?
Oftentimes, the mortgage broker is paid by either the lender or borrower; but never both. A lender-paid compensation plan pays brokers from 0.50% to 2.80% of the loan amount. You can also elect to pay the broker yourself; known as the “borrower-paid compensation.” So, if you’re going to shop for a mortgage broker, ask your prospects about their lender-paid compensation and borrower-paid compensation rates. While there is a chance that they could be the same rate, you still need to do your due diligence by asking them so that you can find the best broker for your needs and budget.
What Makes Mortgage Brokers Different from Loan Officers?
Loan officers are simply employees of a lender and are paid at a set salary for writing loans for that lender. On the other hand, a mortgage broker South Australia, who work independently or with a mortgage brokerage firm, deals with many lenders and earn the bulk of their money from lender-paid fees.