Mortgage brokers specialize in helping borrowers to secure a mortgage by acting as a middleman and providing them with comparison shopping, expertise, and other services. Most brokers have built up a network of contacts and can tap into a larger range of providers and products than borrowers can access on their own. They also have the industry knowledge that’s needed to recommend the most suitable loan for any given customer.
To make these recommendations, mortgage brokers need to get to know their clients and to review the important details of their loan applications. In most cases, the brokers are working on commission and are only paid if the mortgage goes through, which means that they’ll go out of their way to make sure that the application is as polished as possible.
The very best brokers are proactive instead of reactive, which means that they go out of their way to follow up with applications instead of simply filing the paperwork. They know that their job isn’t just about helping people with a mortgage – they’re helping them to set up their lives, and as such it’s important for them to make the process as smooth as possible.
What is a Commercial Mortgage Broker?
Commercial mortgage brokers are like regular mortgage brokers except that they specialize in providing commercial properties for businesses instead of residential homes. Most commercial mortgage brokers get started by understanding the kind of property that their clients are looking at buying, whether that’s a commercial property such as an office building or whether purchasing a first home.
The best brokers stand out because of their ability to negotiate the best possible loan term and the interest rate on the client’s behalf. They can even work with accountancy and legal teams to make this a reality. Brokers can also look over application documents to make sure that their clients are being presented in the best light possible.
Most brokers work on a commission-based model, which means that they don’t get paid unless the mortgage goes through. They’ll keep on pursuing the deal on their client’s behalf. They’ll work with you to build relationships over time instead of focussing on a single sale.
Is Mortgage Broking a good career choice?
Thinking about becoming a professional mortgage broker? It’s not a bad choice, and it has the advantage of being a well-paid job with plenty of room for growth and a whole heap of diversity. You’ll also know that by showing up to work every day, you’re helping people to find and buy their dream homes. That makes it the perfect career if you’re a people person and if you love to help other people improve and build their lives.
Just a few of the skills you’ll need include:
- Quick learning: Because no two clients are the same, mortgage brokers need to have the ability to learn on the go. You need to be able to learn something new every day.
- Mathematics skills: You don’t need to be the next Alan Turing, but you do need to be able to understand compound interest and other financial terms.
- Organization skills: You’ll need to be able to set and manage your own schedule while staying on top of the paperwork for a wide range of clients. Motivation is key here, too.
- A good reputation: This might sound intangible, to begin with, but the idea here is that if you have a criminal record or a poor credit history, you might struggle to get a job as a broker.
- Communication skills: You need to be a good listener as well as good at talking and negotiating. This is a given in any business situation, but it’s particularly important for brokers who are dealing with people’s money.
How much does a Mortgage Broker earn?
Most mortgage brokers aren’t paid a salary, and when they are it’s usually augmented with the commission. There are two main types of commission that you can expect: lump sums payments, for when people sign up for a mortgage and recurring commissions based on the remaining loan amount each year.
That means that mortgage brokers can typically expect two or three different sources of income, all of which are combined to then determine their overall salary. That makes it a good idea for a Mortgage Broker to keep track of each of their different income sources and to monitor their performance over time.
It can be tricky to estimate how much a Mortgage Broker can earn in a given year because it depends largely on their performance. Operating costs also need to be factored in, which can include things like rent, wages for employees, business insurance and other overheads. The good news is that the longer you spend as a mortgage broker, the better you get at it – and therefore the more you can expect to make from commissions.
Also read: How to Become a Real Estate Agent?