How to Get the Best Deal from Broker

As much as banks and lenders are out to convince you to choose their home loans, a mortgage broker wants you to do the same through his or her services.

Any business owner is keen to improve their cash flow and mortgage brokers are no different. They receive leads from many sources including their former clients as well as other business partners such as solicitors, accountants, real estate agents and financial advisers. Of course, they are always under pressure because if a loan is not approved after having been referred from one of their business partners they may not receive any more referrals.

That's why they are always keen to expand their business and they may be open to suggestions as to how they can give you, a prospective client, a better deal.

You may have noticed some mortgage businesses offering to share their upfront commissions with their clients. Many brokers find this to be a flawed a business model however and don't offer anything apart from excellent service and prompt attention to their clients’ needs.

There is nothing to stop you however from asking them whether they would consider making a contribution to your loan costs in order to keep your business and to obtain referrals from you.

In a tightening economic market, mortgage brokers are more susceptible to this line of enquiry and you may find they are willing to contribute to your loan application fees if your loan is successful.

Here are some tips on how to approach a broker on this matter.

Tell the broker you have noticed a lot of advertising from brokers who offer to share their upfront fees with clients and ask whether they belong to the same school of thought.

If not, suggest to the broker that it could be to their advantage if they were to assist you because you have a number of friends, family or acquaintances that will be looking for a home loan in the near future. (Make sure you do not mislead the broker in this respect because they may ask you to sign an agreement.)

Tell the broker you are willing to sign an agreement to the effect that if you do not make a referral to them within six months you will repay the contribution they have made.

In order for this approach to work, you must be certain you can make referrals to the broker to make it worth their while otherwise there is simply nothing in it for them and they ares likely to walk away from the deal leaving you high and dry looking for another broker who can help you get the deal done as soon as possible.

There are other ways to get a good deal out of the broker, or at the very least to make sure you are getting the best loan possible. By becoming a little more knowledgeable about the range of products on the market, or in particular some little-known lenders, you can demonstrate to the broker that you are not someone to be trifled with and they are more than likely to make more effort to get you the best deal can find.

Here are some things you can ask the broker to make sure they remain on the ball when dealing with you.

Ask broker how he or she feels about having to live with volume requirements imposed by certain lenders.

Ask them whether they feel compromised by having to fulfil those obligations, and ask them for a written reassurance that they are not recommending a product of one of these lenders to you, simply to satisfy the requirements.

Ask them whether there has ever been a time in their dealings with clients that they have been tempted to recommend a product which pays them a higher commission.

Ask them for a list of the commission payments they receive from various lenders so you can be reassured of their genuineness.

Ask them whether they had ever been investigated by the credit ombudsman.

Ask them whether the new legislation introduced in July 2010 has made a difference to the way they do business.

Ask them whether they give you a checklist of points they will be following up with a lender and ask them how they will keep you in touch with the process.

These questions will alert the broker to the fact that you are not a normal borrower, rather you are careful and considered borrower who needs their full and close professional attention at all times.

This does not imply that a broker will give you any extra service but it may just be enough to tip the odds in your favour that you will receive better than normal attention.

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