The Secret Life of Mortgage Brokers

Mortgage Broker And An Underwriter
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Yes, mortgage brokers have a secret life. A life that we don’t really know about. We know that we should use them for getting the best mortgage loan possible, but do you really know how they are making their money? There are some things about these brokers that you don’t know, that you might find interesting.

They are making their money by getting paid by the lenders that you decide on

Mortgage brokers Melbourne is making their money by getting paid a commission by the lenders that you are using for your mortgage loan. This is why they are so successful in finding a lender that is going to approve your mortgage loan.

If they don’t find any lenders that are willing to approve your mortgage loan, then they don’t get any money for the work they have done. This is why they are making sure that you are able to get an approved mortgage before they are sending out the application forms to different lenders.

They have the contacts that you don’t have

Yes, they do have contacts that you will not know about. This is why they are finding it easier to get a large number of applications out. You might only be aware of two or three banking institutions that are accepting mortgage applications.

But the mortgage brokers might know up to ten different institutions that they are using for getting an approved mortgage loan.

Brokers have a relationship with most lenders that is why they are getting your mortgage approved

Most of the mortgage brokers Melbourne have some sort of a relationship with the different lenders. They know which ones they can try to negotiate with and who doesn’t negotiate, no matter what.

While you don’t know this information, the brokers will know where they can negotiate a better price. This is because they are working with these people on a daily basis by finding approved mortgage loans for many different clients.

Without a broker, you will struggle a long time to get an approved mortgage

This is a fact, and one of the big secrets about mortgage brokers. When you don’t make use of a broker, you are going to struggle for a long time before you are going to get an approved mortgage loan. And, you are going to fill in application form after application form.

Something that you don’t need to worry about when you are making use of the best mortgage broker that you can find.

This might sound dodgy, but there is thesecret life of the mortgage brokers that we don’t know about, or even considered. This is because we don’t really think about mortgage brokers and why they are getting the applications approved so much faster and easier than us. And, this is also because of the secret lives of mortgage brokers that we are getting our approved mortgage loans. If you are considering applying for a mortgage loan, then you should really consider making use of mortgage brokers Melbourne to get an approved loan as soon as possible.

Glossary of Common Terms Used During the Mortgage Process

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To be able to understand all the terms that are being used during the mortgage process with a mortgage broker in Melbourne, you need to know what the terms mean. This will just make the whole process easier and less stressful. It can be hard to struggle to know what they mean with all these terms that most people don’t normally use. Here are some of the common terms that are used during the mortgage process that you need to know the meaning of.

Adjustable-Rate 

With the adjustable rate mortgage, you will repay your monthly premium of your home loan with the latest interest rate. And, if the rate is decreasing or increasing, so will your monthly premium. This might be scary to most potential home owners, but there are many benefits that most people don’t know about.

Ask your mortgage broker for more information about the adjustable rate mortgage, before you make any final decision.

Annual Percentage Rate

This is the interest rate that you are going to repay to the mortgage broker. Every home loan will have an annual percentage rate that you are going to repay. The percentage rate isn’t the same and can be different from broker to broker. It doesn’t matter if you’re choosing the fixed interest rate or the adjustable interest rate. On the contract will stand the annual percentage rate.

You can get some quotes from as many mortgage brokers in Melbourne as possible, to see if you can get a home loan with the least amount of annual percentage rate.

Closing Costs

One of the terms that are being used, that many people don’t understand is the closing costs. This is the costs that you are going to pay during the mortgage process. These costs normally include the attorney fees, recording fees and other costs associated with the mortgage closing.

These costs are also different from one mortgage broker in Melbourne to the next. If you don’t want to pay too much closing costs, then you should make sure that you know the closing costs of the differentmortgage companies, before you sign any contracts.

Construction Mortgage

The construction mortgage is almost the same as a normal home loan. But, these types of loans are for those people that are going to build their own homes. So, you are not going to get a home loan from a mortgage broker, but you are going to apply for a construction mortgage loan.

It can be quite frustrating to try to buy a home, and you don’t understand all the terms that they are using at the mortgage companies. If you don’t know all the terms and you don’t get the assistance from the right people, it might result in you choosing the wrong company or the wrong type of mortgage loan. The better you understand all the terms, the easier the whole process will be, and the better the chance that the mortgage broker won’t try to let you sign something that is not in your best interest.