There’s a huge possibility that you’ve heard the term mortgage broker in your travels, but you can’t figure out how it blends in with your plans of buying the holiday home of your dreams. If that’s the case then here’s some good news for people who don’t know anything about mortgage brokers. You’re about to discover that you can shave off a lot of money off the cost of your holiday home through lower interest rates.
Here are a few pointers about mortgage brokers.
Acts as A Middleman: The job of a mortgage broker is to work in your service with the aim of finding the best mortgage possible for you. Rather than going through the chaos of mortgage lending all alone, a mortgage broker does that for you. They also do the legwork, seeing to the huge pile of paperwork that comes with getting a mortgage.
Their Work is Commission-Based: Well, it goes without saying that they’ll have to get paid since they work for you. There is a standard fee for mortgage brokers which stands at one percent of the loan amount, although it’s also possible for a no-fee mortgage to be negotiated. A “”no fee” mortgage means the bank, rather than you, would be paying for their services.
They are like a Caretaker for Your Loan: You might not like the idea of a one percent fee, but you must consider the fact that they could negotiate a lower interest rate on the mortgage thereby saving you money. And when it comes to processing your loan, they can be very useful.
It’s Best To Find One Through A Referral: It’s best to find a mortgage broker by seeking a recommendation from family and friends. Ask the opinion of people who have had past dealings with mortgage brokers.