Purchasing property is often among the most stressful and complicated periods in life. However, using the services of a mortgage broker can make the process a lot easier. He or she will provide guidance and use their expertise to explain the details of the different mortgages on offer and provide assistance to find the deal that is best for the budget and circumstances of the potential buyer. Whether help is needed to buy a first home, buy to let or re-mortgage, a mortgage broker can simplify the process.
The Duties and Responsibilities of Mortgage Brokers
Mortgage brokers have in depth knowledge of the real estate market. Potential buyers who are in need of help to find a mortgage to buy a property can gain insight from the broker, as it relates to sorting through the huge range of deals, available incentives and interest rates. The duties of the mortgage broker include offering financial advice and recommending the mortgage that is most appropriate for the potential buyer.
Types of Mortgage Brokers
There are three different types of mortgage brokers as outlined below:
1. Some brokers are tied to a single lender or specific lenders, which is an indication that they will recommend only those specific mortgages. This category of broker typically bypasses an upfront fee and charges a commission on the mortgage instead.
2. Other mortgage brokers recommend lenders from a selection or ‘panel’, which is a limited representation of the entire market.
3. There are independent brokers as well, who operate without the restriction of having any ties to lenders. They will most likely recommend lenders from the entire market. This puts them in a better position to make impartial and genuine recommendations. More often than not, this type of mortgage broker require that the potential home buyer pay an upfront flat fee.
Being aware of the roles that mortgage brokers play and using their expertise to your advantage can make the process of buying a home a lot less frustrating.