Mortgage Broker is a mediator, which meets the borrower and lender of mortgage, but does not use own funds to issue a mortgage. Mortgage broker collects documents from the borrower and sends them to mortgage lender for signature and approval. Mortgage funds are transferred to the mortgage borrower on behalf of mortgage lender. A mortgage broker will charge a fee for the issuance of mortgage and / or yield premium spread from the lender as compensation for his services. For example, mortgage broker negotiates with the borrower about 8% interest rate on per annum, and the lender issues a mortgage at 6% per annum. In this case, a spread of 2% will be paid to the mortgage broker as compensation for his services. You should not confuse mortgage banks, which issue mortgages on their behalf at their own expenses with mortgage brokers. In this case, mortgage brokers often act as mortgage banks intermediaries.
Mortgage broker is not only a realtor, who looks for accommodation options for some reward, ideal mortgage broker is a specialist with a wide range of knowledge and skills, ready to solve any complex problem associated with mortgage. Mortgage brokers should ideally fulfill functions of economist, mortgage market researcher, banker, who determines the price of risk, real estate agent, who keeps his fingers on the pulse of real estate market and have extensive experience of mortgage deals, as well as lawyer versed in intricacies of transactions. Ideally, mortgage broker should combine the above mentioned features.
If you need a mortgage broker can really help. According to statistics, only 2 or 3 people of 10, which decided to get a mortgage loan from a bank with their own efforts, commit the transaction. In this regard, the services provided by mortgage brokers are in high demand and gaining even more popularity with every successful transaction. Mortgage broker keeps tracking of proposals on the mortgage market, knows the demand, can solve common problems, takes into account wishes and preferences of potential borrowers, and as a result, offers the best mortgage option. Conscientious mortgage broker works with each potential borrower with individual approach. But it is still possible to identify common features of the interaction between mortgage broker and borrower: he takes as a basis client's wishes, collects necessary documents, contracts with bank providing mortgage loans, insurance and real estate estimating companies. It is ideally if the broker tracks the transaction from the very beginning to the end. In fact, mortgage broker is taking all efforts related to mortgage loan obtaining, collection of documents and choice of residence. Specialists from beaconmortgagelenders consider it reasonable to turn to mortgage brokers.
Darya Tokareva for beaconmortgagelenders.com with the assistance from Jessi Johnson home equity loan provider in Vancouver.