So you have found your dream home and now you are on the hunt for a mortgage in order to put those keys on your hand. Well, one of the best ways to do it is by working with an excellent mortgage broker Palmerston North who can guide you through the lending process.
Chances are you have heard the phrase ‘mortgage broker’ from your friends who have purchased a house or real estate agents, but exactly who are these brokers and how does their work differ from say a loan officer? These are the questions we will be tackling in this read.
What’s a Mortgage Broker?
This is an individual who acts as the middleman between you and the lenders. Their role is to work on your behalf with various banks to find mortgage lenders with the best rates for you. Like APM Finance, they are well-connected in the industry, which makes your hunt for a mortgage way easier.
A mortgage broker Palmerston North is a regulated and licensed financial professional who does most of the legwork to help you get a mortgage. This includes gathering the relevant documents, verifying your employment and income as well as pulling your credit history. They then use this information to apply for home loans on your behalf with various lenders out there.
How is a Mortgage Broker Palmerston North Paid?
More often than not, they are paid by lenders and sometimes by the borrower, but never both. The compensation plans usually range from 0.5% to 2.75% of the loan secured. When looking for a broker, you will want to ask them what their lender-paid or borrower-paid compensation rate is. In most cases, they are the same rate, but it’s always good to do your due diligence.
What Is The Difference Between Mortgage Brokers and Loan Officers?
Loan officers are lender employees and are paid an agreed salary for giving out loans. Brokers, on the other hand, work independently or with a brokerage firm, deal with numerous lenders and earn most of their money through lender-paid fees.
How Do You Pick The Best Mortgage Broker Has To Offer?
The best way is to ask relatives and close friends for referrals, but ensure that they have used the mortgage broker Palmerston North and are not just giving you the name of a distant acquaintance. You should learn all you can regarding the services of the broker, level of knowledge, communication style as well as the approach to customers.
Your real estate agent can also be another referral source. Ask for the names of several brokers in Palmerston North that they may have worked with and are reputable. Some real estate agents have in-house mortgage brokers, but you are not obligated to use them.
Finding an ideal mortgage broker is similar to picking the best lender. It is important to interview at least three of them and find out what services they provide, how long they have been in the business as well as how they can help simplify the process.
Lastly, ensure you check them out online to see whether they are in good standing. Online reviews and the BBB can come in handy, but take them with a grain of salt.