This post is to explain how a mortgage broker will play a key role while you sell your house by for sale by owner. The mortgage professional may be referred to as a Specialist, Agent or Consultant. The owner of a Mortgage Brokerage is usually the broker, while the agents work under the broker’s license. The mortgage products that are available to the broker are also available to its Mortgage Agents.
If you do not meet the lending criteria of a particular bank you will have to shop elsewhere. What most people don’t realize is that every time they go to a different bank, a credit check happens. The result is that each time a credit check happens your fico or beacon score goes lower. You might end up with a higher interest rate or not being able to get qualified for a mortgage at all because of the drop in your credit score.
A Mortgage Agent takes the intimidation out of the mortgage process as they will negotiate aggressively with lenders on your behalf. When your selling by for sale by owner you would have a Mortgage Consultant pre-qualify perspective buyers. Why have unqualified buyers coming in to your house basically wasting your time. You want to deal with buyers who can afford your property especially when selling by for sale by owner.
A Mortgage Agent gets paid a finders fee from the lender that the mortgage was arranged with. Sometimes there is a brokerage fee which is paid by the borrower, depending on the circumstances. More often than not the lender pays a finders fee and there is no brokerage fee.
When your putting your team together remember your Mortgage Broker/Agent and what he/she will do for you and your buyer. Remember, no financing no sale!
Hans
