The Important Role Of Brokers
Mortgage Brokers are professionals who play an important role in mediating between a lender and a borrower. Brokers collect personal information about the client for the lender including employment and medical history. They also provide the clients’ financial and credit information to the lender. A good broker will not only educate you on your options but understand the buyers goals and present the loan option that best suits their situation.
The toolkit below is put out by the Consumer Financial Protection Bureau so that homebuyers can get the best loan for their situation, to understand closing costs and examples of some situations that may be similar to yours. Download your copy below.
Free Home Buyers toolkit.
There are many different types of brokers. Below are the more sought-after brokers: Mortgage broker: mortgage brokers guide customers through the process of selecting a suitable mortgage package with competitive package offers. They also offer financial advice on mortgage and property. Getting pre-qualified for your home prior to shopping for your dream home can help your realtor one, know that you are serious and two, give you an idea of how much of a house you can safely afford to purchase.
The Real estate broker: real estate brokers find buyers for those wanting to sell real estate and finds sellers for those wanting to buy real estate. Real estate brokers help sellers market their property and sell it for the highest possible price; they also help buyers purchase property for the best possible price. Once the broker successfully finds a buyer, the real estate broker receives a commission for his or her service. In the U.S. a 6% commission is usually the case for residential real estate and is usually paid by the seller. This is generally split 50/50 between the listing agent and the selling agent.
Forex broker: forex brokers are firms or individuals, who assist individuals or firms to trade in the foreign exchange market. Forex brokers make money from pip or “spread.” A spread is the minimum price increase in currency. For instance, in Euro/US Dollar, a shift from 0.9007 to 0.9008 is one spread. In US Dollar/Japanese Yen, a shift from 127.40 to 127.41 is one spread.
Stockbroker: a stockbroker is a person or company who buys and sells stocks on behalf of another person or company, and tries to match up buyers and sellers. Many people seek the advice of and pay for the services of a stockbroker to help them in making informed decisions about their finances with the knowledgeable and interactive guidance of a licensed stockbroker.
Insurance broker: insurance brokers source contracts of insurance on behalf of their customers. An insurance broker will help you to choose the best to fit your needs.
An investor looking for an investment avenue will benefit greatly from using a broker, as brokers tend to be more up-to-date with trends and happenings in the market. Also as per law the broker has a fiduciary duty to advise the customer in the customer’s best interest.
Utilizing a broker for any of these services typically gives you an advantage over others. The brokers are expert in their field of service and if you can forge the right relationship can be a long term friend and partner in your business and home buyer ventures for years to come.