Having a qualified mortgage broker to help you obtain financing for your future home is the best way to go. Many people have the misconception that only individuals with bruised or poor credit seek the services of a mortgage broker. If you have excellent credit and stable income and feel that you don’t need the services of a mortgage broker SA, you are missing out.
A good mortgage broker has access to many types of product on the market and could find you in most cases a better product, and more often than not, a better rate than you could on your own. You might be asking how can that be? Especially when the mortgage broker needs to be paid for his time and services?
Let me Explain
Banks (Lending institutions) spend a ton of money for customer acquisition. The traditional way for banks to acquire mortgage customers is pay tons of money in advertising and then to hire full-time mortgage officers to service their mortgage customers at the branch level. It is a tremendous cost to the banks and requires many full-time employees and many locations to house them.
A mortgage broker will only be paid a finder’s fee by the Banks if they bring qualified clients to them and just upon successful completion. The brokers are not on the banks’ payroll, don’t require office space from the Bank and they do their advertising.
The lending institutions can save a lot of money and often prefer to work with a broker because they are commission-based and the banks pay only upon completed clients. The banks quite often will offer their preferred rates or best-discounted rate to a broker and compete with each other to establish loyalty and repeat business the brokers. You will benefit by getting a better product and better rates by working with a qualified Mortgage Broker.
The discounted rates are revealed to the public. What you see and get if you fail to negotiate is the Banks Posted Rate. The broker, on the other hand, considers the Banks Posted Rates as well as their Discounted Rates. The Broker has a considerable advantage over you.
As far as the broker is concerned, he gets paid the same commission whether you understand the Posted Rate or The best Discounted Rates. You can be sure that a good broker will try their best to get you the best product and rate in hopes of getting your repeat business and your referrals. Next time you are in the market for a home, find a competent, knowledgeable, ethical, professional mortgage broker SA that you can trust. You can stand to benefit a great deal.