Mortgage Broker Arrangements

Author：佚名 Source：none Hits：103 UpdateTime：2008-10-18 23:52:55


The best people to give you advice and mediate with a borrower and lender are the professional brokers. What they do is gain personal information about the client that a potential lender can size up and give loans to. Usual information includes medical history and employment background. Brokers also inform the lenders about the borrowers credit and financial information.

What do mortgage brokers actually do? They give guidance to customers by laying out a good mortgage package for them to select from. They also advise clients on properties and mortgages. They also help in the processing of clients application forms and the completion of relevant documents for them to avail of their mortgage needs.

In the US, mortgages comprise of home loans that account to more than 80%. Banks seek the help of brokers so they can gain qualified borrowers that these brokers find and screen, who they can lend out their money to. There are also the insurance brokers who handle home insurance and help clients choose the best insurance contracts for their homes.

When dealing with brokers, do not forget that they are doing you a service for a corresponding amount their commissions. Since they can pocket money in large commissions, many brokers have grown to be mindless of the clients needs but their own. If you take time to learn a few things about brokers, you can then easily spot a rogue broker. Here are some tips to sniff a bad deal:

1. Learn about lenders since they can be loan sharks. Sharks can give you a good deal at first, but then will take up your whole arm if you are in a dire financial position.
2. If a lender cannot give you how much the closing cost would be, chances are, they can financially rip you off. Mortgage brokers abiding by the Real Estates Settlement Act will easily give you this information.
3. Be careful of lending companies with no transparency in disclosing the exact interest rate computation and other fees.
4. If a lender encourages you to lie about necessary information, say, your income just to kick up your applications approval, this lender can be a hoax.
A broker who pushes you to do that can later on do some fraudulent acts that can rip you off financially.
5. Be cautious of interest rates that are too high or too low. This can be very suspicious. People with bad credit rating oftentimes fall prey to this form of loan arrangement.