Why Buyers Avoid Mortgage Brokers

Mortgage brokers play an important role in the process of home purchasing. A mortgage broker acts like intermediary who brokers mortgage deals on behalf of people or companies. An important function of a mortgage broker is to access mortgage loan offers from different lenders and to find the best deal that suits the buyer. A mortgage broker helps customers to compare the interest rates of home loans and to select the one with low rates and flexible terms. A mortgage broker also helps the buyers to negotiate the terms of the loan with the lender and to seal the most favorable deal for the buyer.

The concept of Hunter Galloway mortgage brokers was developed in Australia in the early nineties, soon after the introduction of regulated banks and building societies. The government initially allowed regulated banks to set their own guidelines as regards to mortgage loans. This was followed by the introduction of depositories, which handled the transactions between borrowers and lenders. Depositories were allowed to promote home ownership and to provide a transparent, convenient way to purchase homes.

There are mainly two types of mortgage brokers. One is a direct lender or a bank, the other is a direct wholesale lender or a wholesaler. A direct lender facilitates loan purchases directly by individuals without involving any middle men such as a wholesale lender or a bank. On the other hand, a bank facilitates loan purchases through its subsidiary banks, which have branches all over the country. The main purpose of a bank is to extend credit to its customers, at a regulated interest rate and in a given term.

A mortgage broker helps you in the whole mortgage application process. He collects the required information from you and passes it to the appropriate department. After obtaining all the information, he will assist you in preparing your mortgage application form. Brokers do not deal with the loan providers directly, they work through third party agencies. This means that the brokers may receive commission from the third party agencies, but they have no other links with them. This results in the broker's charges being much lower than those of the third party lenders. To know more about mortgage, visit this website at http://money.cnn.com/real_estate/.

You should be wary about the commission this brisbane mortgage broker receive and always ask for their exact commission upfront. Some brokers offer their services in the form of discount brokers' commissions and this can be very beneficial to the buyers. The discount broker's commission may vary greatly and you need to shop around for the best rates.

Brokers do not provide financial advice. Mortgage brokers assist people to buy loans on the basis of various criteria. For example, you may want to buy a house in order to take up retirement and in this case you would have to consider the tax benefits of the plan. If you are not sure about taking a loan, then you can get in touch with a big bank in-house mortgage broker. A mortgage broker works for the banks, so it is not surprising that he or she will offer a wide range of loans and plans to the consumers.

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