Ravi Chandran
As a mortgage broker is a fiduciary of the borrower, best mortgage deals can be made when you engage one
When using the mortgage broker services rest assured that the broker acts in your best interest and as your agent with the lender. The mortgage broker is usually an agent for the purpose of arranging the home loan transaction and generally is the fiduciary of the borrower. This relationship imposes a legal duty on the broker to disclose to you the important facts you need to know about the loan and it means the broker must act in your best financial interest.
You may get the best mortgage deals with mortgage brokers because they have a duty of fairness and honesty to both you and the lender.
These legal duties can be important in resolving disputes that may arise after the loan is made, but the best way to avoid problems and disputes is to ask questions and be sure you understand the terms of the loan and each of the loan documents before you sign.
When acting as an agent, the broker speaks for you in submitting your loan application to a lender. Make sure that you give the broker full and accurate information and that any loan application or other document the broker prepares for your signature is accurate and complete before you sign it. Never sign blank applications or forms. Make sure you understand the terms of the loan before you agree to it. Commissions and lender fees are not set by law for mortgage broker services.
Mortgage broker services are free as brokers are paid directly by the lender who funds the loan. Generally you have to compare fees charged by several lenders and mortgage brokers. You may be able to do this with a few phone calls. Ask about the amount of the fees and costs to be paid by you in cash before the loan is funded, the amount of the fees and costs to be paid from the loan proceeds or lender rebates, and the amount of fees and costs to be financed.
Mortgage brokers will obtain pre-approval for a loan based on preliminary information supplied by the borrowers. This is not a loan approval. Loan approval only takes place after all required information has been reviewed and approved by the lender’s underwriter. Loan approvals may also contain conditions that the borrower must meet prior to the loan funding.
Best mortgage deals are gotten when you understand how interest rates work.
The interest rate on your loan can either be locked or floating. If you choose to obtain a loan lock, the mortgage broker will “lock in” an interest rate at the time you request the lock. This lock is for a given period of time. Always ask your broker for the length of time the interest rate will be locked and if there is any lender charge for locking the interest rate. Always ask for a written lock-in agreement, signed by the mortgage broker, detailing the exact terms of the lock-in.
You may choose to float the interest rate on your loan. This means that the loan’s interest rate will be set at the prevailing interest rate for your loan program on the day of closing. Remember interest rates can change daily and sometimes more than once in a day. You need to talk with your broker to determine the best course of action for you.
Brokers usually act as your agent with the lender. You can also deal directly with some lenders without using a mortgage broker. Whichever you choose, ensure that you have checked out the company. Try to use companies that people you know have used and can tell you the level of service provided. Rates should be competitive with other companies. Remember that if the deal sounds too good to be true, it probably is.
The broker will usually request that you submit the documents that the lender requires for the loan program you are trying to obtain. Both the broker and lender will provide you with required disclosures regarding the terms of the loan. It is important that you review these disclosures and ensure that the terms meet with your approval. The broker obtains the required information and submits it to the lender’s underwriter for loan approval.
This is a critical stage in obtaining your loan. Ensure that you respond to all requests for information from the broker in a timely manner. This will increase your chances of getting the loan or learning why you don’t qualify. This is also the time you may want to lock in an interest rate. Remember to keep in contact with the broker and to monitor the loan process, ensuring that the broker is meeting the agreed upon time frames.
In the final stages of the loan process ensure that the loan terms and costs are the same as agreed. Read all documents. Do not let yourself be rushed. If you have questions, ask them at this point and make sure you understand the answers. If the terms and conditions are not what were agreed upon, do not sign the loan documents. Request that the documents be redrawn stating the correct terms.
You get the best mortgage deals when you are on a seamless path
When using mortgage broker services, know that they can set you up on a path that can get you a home loan in a quick and seamless manner. Brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home or commercial purchase needs.
Whether you are looking for a new home loan or to refinance your existing one, mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through them.
