There are several ways for you to get a home loan for your next new home. You may either approach a bank or credit unions or even private lenders. All of them comprise the category of mortgage lenders and are also referred to as direct lenders. However, you may also approach a mortgage broker, who can also assist you in getting a proper home loan.
These mortgage brokers basically act as an intermediary between the borrower and the lender. Although the broker will not provide you with the loan money directly, he can surely help you find the right mortgage loan that will fulfil your needs. He will also do all the necessary legwork needed to find different lenders and to process a loan for you.
What Do You Mean By A Mortgage Broker?
When you talk about a mortgage broker Canberra, it refers to a person who mainly works on your behalf with multiple real estate financers in order to find the best possible mortgage rates and mortgage lender to fulfil your needs. A mortgage broker may either be an independent broker or may be associated with a brokerage firm.
Brokers have established relationships with different lenders. This makes it simple for him to do comparison shopping for you. This not just saves your energy, it also saves you plenty of time. Instead of wasting time and spending it on numerous research and later applying for various types of loans, brokers does all the work for you in finding the best possible mortgage rates and loans for you.
In exchange for the services rendered by brokers, they a broker fee or an origination fee that you normally pay when you close a deal. These broker fees are normally a specific percentage of the entire loan amount. It is certainly not something that you pay separately. It is normally seen that mortgage brokers add their fees to the wholesale mortgage rate rather than the higher retail rate.
Should You Approach A Mortgage Lender Or A Broker?
The answer to this question is entirely dependent upon your preferences and whether you think it possible to save time by using the services of a mortgage broker. If you think that you have enough time to research the various loan options available in the market, you can definitely approach a lender directly.
You will be surprised to know that it is not very clear in this modern market whether you are actually working with a broker or a lender. It will be a good thing to ask your mortgage company whether it is a broker or a lender. You should also make it a point to ask if the individual or the company is licensed. You should also try and research the broker the company with the Better Business Bureau, the National Association of Mortgage Brokers, the Consumer Financial Protection Bureau, and the NMLS website. Even if you do not wish to work with a mortgage broker or lender, it will be better for you to find an individual broker with whom you are comfortable working.