Saturday, January 13, 2018

How Mortgage Brokers In California Make Financing Easy For Buyers

By Donna Sullivan


The ownership of property has always been seen as the foundation of long term financial security. Families want to own their own homes because they feel that they are simply paying the bond of a landlord if the rent a home. Businesses want to own their own properties because it will free them from the many restrictions mall owners and business parks impose on their tenants. Most people will need financing, however. In such cases, mortgage brokers in California can be of great help.

Applying for financing to purchase real estate can be time consuming and onerous even for those with an excellent credit record. Ideally, applications should be made to several banks but many buyers simply do not feel up to it. Often they simply accept the first offer for financing and just accept the rates and the terms and conditions. This is where and experienced broker can be off great value.

A broker acts independently. He therefore do not promote the products of a single bank or financial institution. He work with many different financing institutions, which allows him to recommend the product that will best suit the needs of his client. He is also in an excellent position to compare the many products and to point out the pros and cons of each choice to his clients.

As unlikely as it may sound, a broker often finalizes a loan application much faster than a bank does. This is because the broker will only be remunerated once the loan in approved. He has incentive to do everything possible to speed up the process. Bank employees do not have that type of incentive. In addition, they have no relationship with the applicant and they have to deal with numerous applicants at the same time.

Banks often take longer to consider an application from a borrower. They have no incentive to work quickly and they work with many borrowers at the same time. A broker, however, work with only a few clients at a time. He is motivated to finalize the loan as quickly as possible because he will only be paid once the loan application is closed.

Many borrowers are wary of using a broker to handle their loan applications because they expect it to cost a lot of money. There are some professionals that charge a service fee, but most of them do not charge their clients anything. Instead, they earn commissions from the lenders. Banks pay brokers an average of 0.7 percent of the loan amount as a referral fee.

When in need of a broker, it is important to choose a professional that has a long standing track record and an excellent reputation. They need to have access to several financial institutions too. In some cases, potential borrowers may need the services of a specialist broker, such as when the client has a poor credit history. Any reputable broker will be all too willing to provide references.

One wonders why property buyers still approach lenders personally. A broker offers superior service, professional advice and a much more efficient application process. In fact, buyers have absolutely nothing to lose.




About the Author:



No comments:

Post a Comment