An Update On Toronto Mortgage Broker
A mortgage broker works as an independent intermediary who brokers mortgage loans for other people or companies. A mortgage broker helps you find the appropriate type of mortgage and help you understand all aspects of the loan, from application through the closing process. Mortgage brokers are usually independent financial advisors who work on commission, which is why most mortgage brokers charge a percentage of the loan amount they represent to their clients. The majority of brokers have at least a bachelor’s degree in finance, preferably with additional degrees in finance or accounting. Brokers need to know the different programs available for pre-booming homeowners, as well as options for young couples who can’t afford to buy a home right now, and they also need to understand how to find profitable borrowers who will refinance their home and sell it fast. Check Toronto Mortgage Broker.
A commission is often paid to the mortgage broker by the mortgage lender; however, mortgage funds usually have minimum commission rates and sometimes differ depending on the mortgage lender and the mortgage funds. In essence, the mortgage broker makes money on the mortgage funds as long as the origination fee is paid. When commissions increase, rates decrease. A broker may be paid by the mortgage lender or directly by the borrower. Regardless, of whether paid directly or indirectly, the mortgage broker still makes money from origination fees.
Legwork: Mortgage brokers work primarily in the third party mold. This means they do the legwork between you (the customer) and your lender (the lender). Brokers collect your application and all documents and do all the paper work for you. The legwork often includes gathering financial statements from the borrower including income and expenses, reviewing paperwork, and contacting lenders for any questions. Brokers may also interview homeowners for you to learn more about the mortgage process and what is possible with the type of loan you are seeking. Finally, brokers prepare loan documents and forms for you that include the disclosures and all the necessary legal paperwork.
