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  • Private Mortgage Broker vs Traditional Mortgage Broker

    October 9, 2015 | Blog
  • private mortgage broker

    A mortgage broker can offer you the best choice when you are dealing with an important investment like buying a house or renewing a mortgage. Sometimes it is difficult to make a decision in either situation without an agent or broker. Usually, a Broker will give financial ideas and suggestions that meet your expectation.

    "Hard money" that comes from private money funds come from private lender companies or investors. These private businesses or investors are willing to loan out money to home buyers to purchase a particular property. These types of mortgage brokers are located everywhere. They are readily available and provide excellent services.

    Qualifications of a Mortgage Broker


    The basic profile of a mortgage broker is to get money for those who need it from those who have it. In a way, a mortgage broker works both for the buyer and the lender. He/she should have solid knowledge of financial statements and mortgage quotes.

    The basic profile of a mortgage broker is to get money for those who need it from those who have it. In a way, a mortgage broker works both for the buyer and the lender. He/she should have solid knowledge of financial statements and mortgage quotes.

    What separates an excellent mortgage broker from the average broker are his/her interpersonal and negotiating skills. A degree in a business-related field plus a deep knowledge of real estate business and property laws are essential for the career ladder of a broker.

    Private Mortgage Brokers Will Help You Find a House of Your Choice

    Private mortgage brokers help homebuyers to find mortgages that would match their preferences in any circumstances. There are people who would deceive people for their own profit. Due to the high level of competition that has taken place in the market, it creates an intense level of pressure on the part of the brokers and the lenders. And it would help the consumers fulfill their dream of getting a dream home of their choice in the market.

    You need to take care of the fact that you steer away from such private mortgage brokers who would swindle you of your money for that dream home. Various banks have resorted to various mortgage agents due to the high level of competition that takes place. The job of a mortgage agent would be to sell mortgages on behalf of the banks, and that would be their primary source of activity. Their mode of payment would be a percentage of the total sale of the transaction that took place according to the size of the sale.

    It is very important to be cautious as a private mortgage agent can dupe you of your money by charging you unnecessarily. A private mortgage broker have been known to try and capitalize on the ignorance of the clients when it comes to their knowledge. As they have the chance to gain money, and this makes them greedy. So it is important that you should stay vigilant at all times and then you can crack a deal with a reliable mortgage broker who would genuinely help you in finding the property of your choice.

    Thorough research and knowledge help mortgage brokers to benefit equally for the buyer and the lender. In the lending community, a mortgage broker should have close contacts with multiple banks, trust companies, and private lenders. Depending on the lender, a mortgage broker can be commercial if he/she works with the companies, and residential if he/she works with individuals.

    The mortgage service might include special programs for self-employed individuals, investors, credit-challenged people and newcomers, among others. Only a mortgage broker can help you choose the best option from the lot. He/she can even help you build your credit rating and save money. Since he/she does not work for a lending institution.

    Besides, it is almost impossible for homeowners and buyers to understand the complex borrowing process and track the best lenders and rates. Mortgage rates also change daily that makes it even harder. An expert can guide you all through these processes through knowledge and experience. Several lenders also accept mortgage submissions only from mortgage brokers and refuse borrowers with poor credit records. Mortgage services are becoming more popular these days.

    The Pros of Private Mortgage Broker

    - Easy to qualify

    - Great for 'flippers'

    - Geared toward 'fixer-upper' properties

    - Short approval process

    The Cons of a Private Mortgage Broker

    - High-interest-rate

    - Short payback period

    The main difference between private mortgage brokers and other types of mortgage brokers is that money almost always comes from private investors or private lending companies. While traditional mortgage brokers find the best rates from multiple banks.