What You Need To Know About Your Mortgage Transaction: The Roles Of A Mortgage Lender, Broker And Sales Agent - part 2
by John R. Blakefield
For a broker, in addition to assuming these responsibilities in the absence of a sales agent, the broker must arrange meetings between the buyers and sellers until the new owner takes possession, arrange for title searches, list properties for sale, advertise these properties, supervise agents, offices and advertising, and compare properties with similar listings to determine a market price for the properties under his or her listing.
Even with all these responsibilities as a broker, the biggest difference between a sales agent and broker is the fact that the broker can be responsible for arranging financing for the buyer. The buyer has a choice to either find and obtain financing himself, or have the broker do it for him. Either way, the broker is still responsible for arranging the transaction between the buyer, seller and lender, despite who found the financing.
Before, during, and up to the close of escrow, the broker must disclose all information about a property to both the buyer and seller. The broker is responsible for checking all visible aspects of the house in order to assure maintenance and upkeep of a property. If there are any problems or concerns with the property, even if the seller did not disclose to the broker, the broker must notify both the buyer and seller immediately. This assures the buyer that he knows all information about the property. Otherwise, if an offer is made, the buyer can pull out of a transaction without any repercussions.
The broker is also responsible for making sure all of the terms of a contract are met before the closing date. This includes home and termite inspections, environmental regulations, and any repairs, upgrades or changes to the property as agreed to by the seller. The broker must make sure that the binding terms are carried out.
When the broker is working a specific deal, he has many choices of where to obtain financing for the buyer. There are many options for mortgage lenders, or those who loan the money to the buyer to purchase the property. Mortgage lenders may be thrift institutions <http://www.ftc.gov/bcp/conline/pubs/homes/bestmorg.htm>;, commercial banks, mortgage companies, credit unions, and even personal entities. Depending on the type of lender, type of loan, and personal financial situation, the current market, and city the property is being purchased in, quotes can greatly differ on a case by case basis.
A broker is usually helpful in looking at these variables and will be knowledgeable in where the buyer can obtain the best loan at the lowest rate possible. It would be difficult for a buyer to be aware of, have access to and shop many different financial institutions to determine what the best loan is. Buyers find brokers very useful in this area because they have contacts and information that the buyer would not.
Sales agents, brokers and mortgage lenders can make purchasing a property go very smoothly and save both the seller and buyer a lot of time, energy and money. Because the sales agent and broker are working for and in the best interest of the buyer, these transactions can be a great experience and make everyone happy, especially the new home buyer.
If you feel that the services of a broker and agent are right for you, then be sure to ask around your community and get references from several brokers you may consider doing business with. Always check licenses and verify that they are legally capable of handling your transaction. You are more likely to enjoy the house buying experience if you are working with someone who is looking out for you and is very knowledgeable in your community.
Copyright (c) John R. Blakefield
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