Dargan Financial - the way mortgage brokers should be
How does a Mortgage Broker work?
A mortgage broker helps you choose and apply for loans from a wide selection of lenders, including the major banks and non-banks. Competition among lenders is fierce and new home loan products are available every day. Most borrowers are confused by the overwhelming number of choices and the amount of conflicting information. Using a mortgage broker simplifies the search. A broker can help you choose the best loan from their panel of lenders and can potentially save you thousands of dollars.
Mortgage brokers usually do not charge for their service because they are paid by the lender. Lenders work with mortgage brokers because they allow the lender to promote their product without needing to spend money on expensive branch networks or advertising campaigns. Some lenders such as ING, Citibank or GE Money have few or no branches and rely on mortgage brokers to represent their products. Others like the major banks use mortgage brokers to try to increase their market share.
A mortgage broker should initially ask you questions to better understand your situation. Your broker can then use specialised software to help you choose and apply for a loan on the spot. Your broker will act as an intermediary between you and the bank throughout the approval process. Once the loan has been advanced your broker will keep in contact to assist you with any problems or questions you may have and to make sure your loan is still competitive.
With so many mortgage brokers available, choosing a broker can be a difficult task. Not all brokers are the same, read about why you should choose Dargan Financial.
