(ThyBlackMan.com) In many cases, when a person intends to acquire a product of high value, they initially reflect and investigate the best options available in the market, in order to obtain the product that best meets their needs. When we want to buy a home, the process is much more complex and convoluted, and a mortgage broker can help us to make smart choices.
What is a mortgage broker?
A mortgage broker is a person who is responsible for sourcing, analysing, and selecting the mortgage that is most suitable for their client. They act as an intermediary between the client and a financial institution. It is the broker who must find the mortgage that best meets the needs of their client.
The mortgage market is extensive, and, as we know, applying for a mortgage is complicated and requires many considerations, so it is easier if we hire an expert broker.
The first step the broker will take is to analyse and study the profile of their client (you, the purchaser), establish their needs, and construct a detailed profile in order to advise the best course of action. Based on this detailed profile, the broker will compare the offers that exist in the mortgage market and select those that best suit the needs of the client.
When choosing the agreed mortgage, the broker will advise on, and manage, the different procedures to obtain the financing successfully.
Types of broker
There are various different types of mortgage broker, depending on the links that the broker has with lending entities; a broker will typically be one of the following types:
- An agent of a banking entity
- A real estate agency
- A financial intermediary linked to an entity
- An independent financial intermediary
On many occasions, banks look after their own interests ahead of those of their clients; once they have approved a mortgage, they tend to “forget” about clients. Here is a list of the typical differences between the mortgage services offered by a bank compared to those offered by a mortgage broker:
- The bank seeks to meet its sales objectives, so it will try to sell you one of its products, while the broker offers you the product according to your needs.
- For the bank, you are just one more applicant, while the broker offers more personal attention.
- The bank takes longer to answer, while the broker is more responsive in their efforts.
- The broker works with different products and entities, while the bank will only offer its own products.
Overall, considering the scale of investment involved in buying a home, and the long-term nature of the financial commitment, it makes sense to rely on the advice of an impartial and independent mortgage broker to ensure you obtain the most favourable mortgage deal possible, based on your needs and personal financial circumstances.
Staff Writer; Gary Shaw