Mortgage brokers assist people in buying homes by serving as intermediaries between borrowers and lenders, working with both to complete the loan process as efficiently as possible while often helping negotiate fees and reduce closing costs.
Mortgage brokers generally receive compensation of 1% to 2% of the loan value that they originate, which may come either from the borrower or lender depending on federal law.
Working as a mortgage broker requires a licenced mortgage broker to stay up to date on land transfer tax laws, regulations, and in some cases obtain insurance to protect themselves in case of a lawsuit. In order to ensure they understand the full amount of tax their clients are responsible for, it’s also a good idea to have a land transfer tax calculator that is easy to use.
Preparing for the Day
Mortgage brokers assist home buyers in securing mortgage loans to purchase homes. While the profession can be highly competitive and require licenses to practice legally, it can be an incredibly fulfilling career choice if you enjoy networking and negotiation. Most mortgage brokers are paid by lenders; however, some may charge borrowers directly. It is important for borrowers to understand all costs involved so there are no surprises during the loan process.
Most brokers begin their day with a quick scan of emails, texts and social media for any urgent requests or changes that could impact their business. They may also keep an eye on financial markets to monitor any shifts that could impact them directly.
Some mortgage brokers spend time researching lending institutions to gain insight into new mortgage products and their associated terms and conditions, so they can recommend the optimal loans to their clients. They may even make private calls with prospective lenders to gauge how they could assist.
Mortgage Brokers provide assistance as intermediaries by helping their clients to select home loan products with appropriate terms at reasonable interest rates and with all of the paperwork associated with applying for them. They may also help clients navigate any applicable loan modification processes that might come their way.
Client meetings are an integral component of many Mortgage Brokers’ workdays. From in-person meetings to video conferences, this initial point of contact allows the Mortgage Broker to assess client goals and timeframes.
When meeting with clients, it’s essential that you arrive on time and prepared. Your clients want assurances that their mortgage professional is reliable and attentive to their needs. Selecting a comfortable location for client meetings is also key; ideally this should take place somewhere private where clients feel at ease.
After every client meeting, it is essential to conduct a post-meeting recap so all parties involved remain on the same page moving forward. This can be accomplished via email if the meeting was in-person, or video conference for remote clients.
Communication with Lenders
Mortgage brokers are legally obliged to act in their clients’ best interest when suggesting loans for them. Therefore, they must possess superior critical-thinking abilities in order to assess documents, statistics and other sources in order to select the most viable lending solution available to their client.
Financial advisors also need to work closely with other financial firms in order to source the best loans on the market for borrowers, which requires numerous phone calls and emails exchanged between all involved.
Mortgage brokers generally work from offices; however, some work self-employed or on contract. Without administrative support available to them, this task can become time consuming, particularly in cities with large populations and lengthy commutes. Mortgage brokers are paid when loans close so it is essential they actively pursue new business to ensure enough income is generated for expenses and financial obligations; additionally they must stay abreast of market changes in order to provide their clients with timely advice.
Researching Lending Institutions
Mortgage brokers may have access to home loans that would otherwise not be accessible, because they work with lenders who rely on mortgage brokers for clients – this can include wholesale lenders, correspondent lenders, aggregators or franchise groups who depend on mortgage brokers as client sources and create mortgage loans themselves, funding them themselves or outsourcing servicing – while setting loan rates and terms themselves.
Mortgage brokers will research lending institutions regularly in order to stay abreast of policy updates and rate fluctuations affecting lending rates, so as to provide their clientele with accurate, up-to-date information and options.
Some mortgage brokers work from their own homes while others must commute. Either way, flexible working arrangements have become increasingly popular among professionals today – especially for those seeking a more favorable work-life balance. Many brokers have services that they offer which may include tailored, custom loan packages and existing loan ratings for a variety of lenders. Mortgage broker work involves staying informed of the various loan terms and changes in order to offer the best deals possible to customers.