A mortgage broker is a person who brokers mortgage loans for people or companies. Their services are available online, and anyone can get them by making a simple phone call. Mortgage broker Adelaide also need to pass an examination to become insured mortgage brokers. It is meant to ensure that mortgage brokers can offer advice to those who require mortgage loans and are not liable to make false representations to those interested in getting mortgage loans.
Mortgage brokers work by getting pre-qualified or referred to a client. He then compares the rates and packages being offered by different lenders. Once he gets a client, he keeps him updated with all the new loans offered and helps him finalize his decision. With the help of mortgage brokers, homeowners looking forward to getting a home loan could save a lot of money compared to applying for the loans on their own. There are instances where even people with good credit standing could be denied loans as they do not have the credit scores which the banks are looking for.
A mortgage broker Adelaide would have good knowledge about the mortgage rates. As he has access to multiple lenders, he would be able to give the lowest mortgage rates to the borrower. A mortgage broker does not deal directly with the lender but works through a lender network, and he would quote the highest mortgage rates to the borrower. The loan officer’s responsibility is to check out whether the borrower can repay the loan or not.
When the borrower approaches a lender for a mortgage loan, he first goes through the application process. Then, if he feels that he has been denied, he appeals to the lender’s loan officer. Usually, the lender sends back the application if the borrower has met all the eligibility criteria. The mortgage brokers then go through the entire application process and determine whether the borrower is eligible for the loan.
Usually, the mortgage brokers would charge a commission for his services. But there are instances where a mortgage broker would charge a fee only if the loan gets sanctioned. Sometimes the companies charge a certain amount of commission irrespective of whether the loans get sanctioned or not.
In the above said the mortgage brokers are playing two roles. They are an intermediary between the lender and the borrower and a third party who acts on behalf of the borrowers in applying for home loans. As we can see, both the roles of a mortgage broker would be very beneficial for the lenders, and as for the borrowers, they are getting a good deal. Therefore, mortgage brokers are instrumental entities for home loan applications.