How does a mortgage consultant differ from a mortgage broker?
Unlike a mortgage broker, an independent mortgage consultant doesn't work with any one lending institution; instead they work with multiple lenders, meaning they have a wider pool of loan products to choose from in order to best serve their clients financial goals or needs. Most mortgage consultants work with a broker agency that gives them a greater variety of products from a wider and more diverse mortgage lender pool. This can include a new loan origination or refinancing an existing loan on a property.
How does a mortgage consultant get paid?
Mortgage consultants are paid a fee for their services, which is a percentage of the total loan amount paid only when the loan is closed. The fee typically falls between 1% - 3% and will vary depending on the specific agent you are working with and should be disclosed through a contract when the relationship begins, as well as detailed on the closing statement if the loan is approved. You as the borrower are responsible for paying the fee, but many times this can be added into closing costs and paid at closing, or in some instances it can be rolled into the loan amount and paid from the lender at closing.
Who should work with a mortgage consultant?
Mortgage consultants aren't right for everyone. If an investor or homebuyer is confident in the loan product they will use to finance the real estate -- for example. if they're going with a conventional loan -- it may not be worth the cost. But if you're looking to use alternative loan programs, like in commercial real estate, or hoping to get a specialized loan program, having a mortgage consultant on your side can be a huge help and reap major savings.
By shopping around and using their expertise and knowledge of the various programs and loan options available, their efforts can save you thousands to hundreds of thousands of dollars on your loan costs over time. As you would with anyone you add to your real estate team, shop around and make sure you find the right consultant, one that is keeping your best interest and needs as their priority and has the experience, knowledge, and right personality that works well with you.