Mortgage brokers are getting more popular with each passing day. These days, many people hire the services of mortgage brokers. First-time buyers are usually in the list of mortgage broker clients. This is because they find the process easy to use. Just fill some paperwork, give it to the broker and he will find a mortgage loan for you. This sounds easy, right? Well, the hardest part is getting a good broker. These days, there are as many brokers as there are deals. Most brokers are honest and mean well. However, others are unscrupulous and want to milk some money out of you. Hopefully, this guide will help you choose the best mortgage broker the UAE.
Normally, Dubai Mortgage Brokers work with different institutions to secure you the best deal. However, there is a fraction of them who are somewhat affiliated to one lender. This means that most of the loans they sell to customers will be from one lender only. When you encounter a broker such as this one, you should start asking yourself some questions. Does this broker have your best interests in mind? Does it mean that the particular lender always has the best rates in the market? The mortgage market is very dynamic, and lenders are always dropping their rates. Would it not be better to look at all the lenders rates and not only one?
Again the issue of the broker having your best interest in mind comes up. This is because you will find some brokers who are pure opportunists. These will try to force a deal on you even if it is will not benefit you. Some years ago, there was a huge debate sparked about the unprofessional habits of some brokers. They would force a fixed mortgage loan onto a client even though a variable rate will be more valuable for them. At the time, brokers would get a higher commission for selling five-year mortgages that had a fixed rate.
One reason many people prefer brokers is that they are more flexible than lenders. It is easier to get a loan through a mortgage broker than going straight to the bank/ lender. This is more applicable when you have bad credit or are self-employed. Lenders can shy away from lending to people in such situations. A good broker should be flexible and get you a loan even if you have bad credit. They should have access to private lenders or mortgage lenders who will have the services you need.
It is crucial to find an experienced broker to find you a deal. An experienced broker will be in a position to help you navigate through tough situations seamlessly. This is because they have already seen these situations. He/she will also have a network of lenders with different rates giving you a broader spectrum to work with. Many brokers have a history of working in a lending institution e.g. Loan/ credit manager at a bank, etc. These are the best to work with.