Brokers, Heaven Sent or Hell Bent?

Image result for brokersBrokers the word itself, coming from the root word “broke”, pretty much sums up the idea that these people are out to take you for everything you got. There are insurance brokers, credit card brokers, and real estate brokers. Are they just people who are out to sell a contract or are they something more. True, finding a loan through a broker especially a mortgage loan will probably yield a higher interest rate rather than doing your own legwork and finding the best loan and lending company for yourself. But what you are actually paying for when using a broker is the convenience of having someone with the expertise, experience and knowledge to a specific loan. From the papers needed to the small legal matters that surround and encompass the loan you are applying for (i.e. mortgage loan).

A broker is basically a person who has access to a number of different financial institutions, for a single type of loan of which he can offer the borrower with a choice of different options, as well as rates for the borrower to choose from. Educated with each institution’s requirements also all legal representation; papers, documents, taxations and other requirements that would come with every loan, especially a mortgage loan which ownership is 9/10ths of the law. Property loan contracts could take the longest time to pay and thus is surrounded by plenty legalities and loopholes in its contracts. Sort of a lawyer and more than a sales person earns their wages on a commission basis, different types of commissions in fact depending on how a loan contract would be executed. The good thing about this for the borrower is that because of this, to a certain extent, the borrower can haggle the rates with the broker, and how much the broker is willing to give up to sell the contract.

Image result for bad brokersThere actually brokers out there take advantage of their position and knowledge to take advantage of the borrower’s position, but a few rotten apples but that should not mean that these few would ruin the rest of the apples in the barrel. One way to find a good broker is by means of recommendation. Ask around your circle of friends, chances are there is already a broker in your group.

A broker could spell success or disaster for a loan, especially for someone who is not well versed or gets easily confused with the terms or rates of mortgage loans, home loans, personal loans and the like. Unlike bankers who represent certain banks and whose rates are fixed, a broker has a little bit more flexibility when it comes to finalizing loan contracts and when it boils down to it, having a good broker could end up getting a better deal than doing everything on your own. Not to mention a faster way of acquiring a loan from a broker is already educated in all the requirements needed, all legalities and loopholes covered plus a number of lenders, financial institutions and banks that a borrower can take advantage of.