The best way to determine whether a career in mortgage brokering is for you, is to delve into exactly what a mortgage broker does for their customers and see if this appears to be a role you want to take on. So that’s just what we will do, here is what a mortgage broker does for their customers.
There is a broad assortment of loan products and features in the market that might appear overwhelming to the client. A mortgage broker will be able to:
- Evaluate your financial situation
- Locate the right loan for your situation
- Deal with the application procedure
- Provide advice at every step
The sector of mortgage broking is shifting. In early 2010, the National Consumer Credit Protection Act, was created to protect creditors and ensure professional and ethical standards in the brokering industry.
An integral protection for consumers under the NCCP, are the responsible lending obligations on mortgage brokers. The aim of these duties is to make sure that the credit contract or lease is ‘not unsuitable’ for the customer.
The responsible lending obligations call for a mortgage broker to:
- Make reasonable inquiries of the customer about their financial situation, their needs and goals in regard to the credit contract;
- Depending upon these queries, evaluate whether the credit product is unsuitable for the customer and only proceed if the credit product isn’t unsuitable; and
- Provide the customer a copy of the evaluation if asked.
Evaluate your fiscal circumstances
The mortgage broker will take some opportunity to go over the client’s requirements and situation. This gives them the chance to ascertain which type of loan is the most suitable for the client to buy or sell commercial real estate.
To make it easier on the client, they will also have to supply documents to support their identity and fiscal circumstance. These records will include an identification check that requires 100 points of primary and secondary identification documents, personal bank statements to demonstrate savings (if applicable), tax returns, payslips, outstanding loans, statements, etc. and the mortgage broker will advise the client of everything required for their individual situation.
When the mortgage broker has an understanding of the client’s objectives and financial position, they will talk about the many loan products available on their mortgage broker website. A mortgage agent should also supply the client with product comparisons and notify them of proposed mortgage payments and any upfront and ongoing fees.
Locate the right loan for your situation
After assessing the client’s goals and financial needs, the mortgage broker will search their broker websites containing hundreds of loan products from a number of different lenders, including major banks, smaller banks, credit unions and other lenders.
This database is continually updated and contains details of the latest deals from the creditors. From time to time, the mortgage broker can gain access to some exclusive loan products that aren’t available elsewhere.
Complex software can help with this otherwise labour intensive job and usually a comparison table or graph is presented the client for their consideration.
The mortgage broker will then suggest a product or products that will best fit the client’s requirements.
The broker might also supply the client with a copy of the creditor’s comparison rates. Comparison rates include both the rate of interest and fees and charges relating to a loan. It’s a tool that will assist the client in identifying the real cost of financing. This is basically like comparing “apples with apples” but that will assist the client to compare loan packages easier.
Manage the procedure
If the client wishes to move on and accept the broker’s suggestion, then the mortgage broker can enable the client to complete the required paperwork and liaise with the creditor on their behalf. This includes the completion and submission of the loan forms and the continuing communication between all parties before the private or commercial real estate for sale is sold and approved.
The mortgage agent is also required to notify the client of their complaints procedure. This is known as an Internal Dispute Resolution procedure.
Supply information at every step
There are many measures in the loan process and a professional mortgage broker can help the client from the client’s very first steps, like getting pre-approval (in which their loan is “approved” based on certain conditions like loan value) right through to settlement. An Excellent mortgage agent can also provide a Mortgage Health Check further down the trail. Following the ‘health check’ a mortgage agent might have the ability to help their client lower repayments, unlock the equity in their commercial property or house, or consolidate debt. They can also help with clients with refinancing needs should their goals or financial circumstances change.