Mortgage Broker Fees
Mortgage broker fees should not be charged to you the consumer for standard loan contract preparation.
Fees are a function of a loan being written on behalf of a lender by a broker and paid by the lender.
In simple terms it means that lenders do not have to invest heavily in bricks and mortar shop fronts that have to be staffed at the counters to generate business because brokers become their shop front on wheels.
Brokers are far more mobil and are a cheaper way for the lenders to do business.
Yes, the lenders quickly realized that it is far cheaper and consequently more lucrative to pay a free lance broker to write business than it is to occupy and staff stationary buildings dotted around the country side.
Certainly they will do their best to generate business to pay for and justify the buildings and staff that they have got, but the role of a mobil mortgage broker is a proven and well accepted way of doing business for lenders.
Brokers are valuable to both the Lenders (including the big banks) and to you the home owner.
You as consumer will receive SERVICE and a CHOICE of LOANS unmatched by any sole lender, big bank or small! While this in part is because a broker builds his own business where customer service counts, a modern day broker should now operate with sophisticated soft ware that gives them access to all the dominant lenders products in the market.
As such there is very little difference in the commissions paid to a broker by the lenders.
The absolute safe guard to you as a consumer is that unlike many other trades and services, the commission structure and rates are totally transparent in any contract written.
The finale bonus for you is that the any fees paid to a broker only happen after loan settlement and this in some cases can take months to come to fruition.
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