- Why Do I Need A Mortgage Broker
- Questions To Ask Your Mortgage Broker
- What Is A Mortgage Broker & Do You Need One?
Why Do I Need A Mortgage Broker – Hello everyone, to a new series providing explanations of concepts/ideas/terms used in the real estate industry, by an intern with no background in the real estate industry. Yes, you read that correctly.
In this series, I’ll do my best to explain these complex terms as simply as possible so you can understand them better, too. If you are keen to learn more about the real estate industry, let’s start this journey together. Welcome to the What Are They (WAT) series, authored by Mortgage Noob at Mortgage Master.
Why Do I Need A Mortgage Broker
Hello good looking, I hope you are having a good day today. Full disclaimer for this article, yes I know mortgage brokers do refinances and repo’s too…but, please also understand that this is written for the purpose of sharing information with new readers who may learn better using an easier relatable example, hence I I’m only using the example of purchases/new home purchases for this article. Crazy love, take care, be a good person.
Should You Use A Mortgage Broker?
Let’s be honest here, the only time we’ve ever seen the word “mortgage” is during a game of Monopoly. Even then, we don’t know what a mortgage is supposed to do in the game.
Not sure about you, but the way it played out was that when you’re short on money after purchasing real estate (shoutout to #TrafalgarSquarePeeps) and need to pay for that evil dark blue spot (edit: it’s Park Lane) that you just landed on, it seems… Mortgaging your property is the only way to obtain funds to finance the rent you owe.
Firstly, the term mortgage will only be used when it comes to the subject of ownership. Ownership can apply to residential (residential) or commercial (shops, building offices) units.
Borrowers = people who need to borrow money to buy a property (because they don’t have enough money), and they usually consist of people like you and me. For example, if I’m interested in buying a house (including HDB BTO), but I don’t have enough money to pay for it in full now, then I’m a mortgage borrower. Lenders = funding sources that have the financial ability to lend you money. Typically, they consist of banks. Naturally, with different banks, different mortgage packages come with different interest rates.
How To Become A Mortgage Broker In Australia
The way a mortgage broker acts as an intermediary is to help gather information for the borrower and help evaluate the best path for them.
Essentially, they are the middleman between people who want to buy a home but lack the money, and people who have the money.
Now that you know what a mortgage broker is, let me further describe the general process of getting a mortgage first, before deciding whether or not you need one.
After this is done, you will have to ask yourself if you have enough money to set aside to buy this house, or if you need a loan. If you need a loan, you’ll need to decide whether you want to do it yourself, or with the help of a mortgage broker.
How To Become A Mortgage Broker
You can see that using a mortgage broker helps simplify what you have to do. They compare everything so you don’t have to, speed up the process, and basically take the stress off of you. Furthermore, mortgage brokers are experienced, meaning they handle cases with varying degrees of income, so they likely know how to meet your needs.
Of course, if you have the time to do your own research and inquire about banks yourself, kudos to you! You’re probably good on your own. Compiling these numbers really takes effort, and I commend you for that. However, this brings me to my next point.
Well, that’s really up to you. No one can force you to consult a mortgage broker, but let me put it this way. Whether you need one or not depends on whether you prefer to spend time researching yourself, or save time when you have a mortgage broker do it for you.
Your phone contract is about to expire, and you’re planning to get a new phone. You need to research 1. The different plans each carrier offers 2. The extra money to pay upfront for that phone 3. How much data is in the plan . . . 97. Can you get a company discount or not?
Questions To Ask Your Mortgage Broker
How many tabs do you think you’ll have open on Chrome? So…imagine that someone collects all this information, adds up the numbers, calculates them, and advises you on the best route
Needless to say, this is a lot more than just getting a new phone that you just slapped a glass screen protector on. This is the home you will live in long term. There is no such thing as changing it every 2-3 years. Plus, there are more numbers involved because for home loans, it involves interest (I know you don’t have any on this topic). That’s an article for another day (RIP me).
But I guess the point I’m trying to make is to tell you that getting a house is a big commitment, and there are a lot of things to consider before getting a house. So, don’t be afraid to get some help if you need it. Furthermore, mortgage brokers can often get better rates because they bring customers directly to a trusted banker. Well, more money saved.
I don’t know about you but the term “mortgage broker” sounded pretty innocuous when I first heard it. As if they are there to trick you for some reason? Is this just me? But maybe to provide you some security, how about I share how they make their money with you?
What Is A Mortgage Broker & Do You Need One?
Mortgage brokers and banks have already established a relationship with each other, like friends but business wise. If a mortgage broker brings business to a banker, the banker earns a commission for himself, and the mortgage broker gets a referral fee.
Additionally, mortgage brokers charge the same amount of fees no matter which bank you go to, allowing us to provide free, unbiased opinions to choose the best loan for your financial situation.
It’s something we regular people do too! (Important my friends who always give me store referral codes)
In fact, even influencers get a referral fee whenever you price on your purchase. So it’s definitely common, and you can think of mortgage brokers as the power brokers in the housing world. (Only RMB as we say too)
Is It Better To Use A Mortgage Broker Or Bank?
Mortgage Master is built on the principle of our CEO, Mr David Baey, where there is a win-win (really a win-win x 4 that) between clients, banks, bankers and brokers.
So, in our model, it’s a win-win, as not only do you earn in free consultations, but you also get paid when you refer your friend to us*.
While we’re at it, if you’re interested in learning more about how Mr. Pei came up with this model, check out his article on its origins! (If you want it of course… not forced, consent is the way to go).
Right now, it may seem too good to be true, especially if you’re new. Moreover, the “graphic design is my passion” stickers on your elevators tell you not to fall for a scam (if you still think it’s one). But what’s the worst that could happen if you call us? It’s free, and if you decide this isn’t for you, all you’ve given up is a few minutes on a decision for the next 30+ years.
Mortgage Broker & Advisory, Property, Others On Carousell
However, I hope you get a better and clearer understanding of what mortgage brokers are and what they really do. Of course, it is just one of the small aspects of this ecosystem that is the real estate industry, which I plan to cover in the coming times. Also let me know if you are interested in any topic you would like to learn more about. Until then, I’ll curse your new buddies later.
Also, if you read this far, thank you so much! You’ve started your journey by not staying current on your mortgage.
Well, now that the actual article is over, I can certainly be more formal in my writing… let’s hope so, and I’ll be criticized if my bosses scold me.
However, if you’ve played Monopoly, you’ll know that you get the Royalty Card after you buy it. For example, if you purchase Trafalgar Square, you will receive a red title card that represents the deed to that piece.
Canva Templates Mortgage Broker Quotes Instagram Post
Now, if you trample on another player’s property and you have to pay rent, but you don’t have enough money, what you can do is mortgage your property. This means you flip over your property card, and you get that amount of money mentioned there. Using the same Trafalgar Square example, the cost is $120 if I’m not mistaken.
If that’s not enough, you must mortgage more properties until you have enough money, or until you run out of properties and have to declare bankruptcy, whichever comes first. If this is $120