Finding a bond originator or mortgage broker should be at the top of your smart-start to-do list. Your bond originator is an essential part of the home buying process and can turn the daunting task of getting financed into a completely stress free endeavour, here’s why…
A bond originator’s function is to approach financial institutions and find the best possible bond for the purchase of your home. Simply put, a bond originator acts on your behalf to source the finance you need to purchase your home. As a first-time home buyer you may find the world of bonds and rates confusing and stressful.
Solicit the services of a reputable Bond Originator; they should preferably be a member of the National Association of Mortgage Originators (NAMO). Your bond originator will then handle the entire process on your behalf.
What exactly will a Bond Originator do for me?
Your bond originator has a wealth of knowledge and resources at their disposal. Most Bond Originators have long standing relationships with many financial institutions and so hold some weight when it comes to negotiating, and offer you a broader choice of loan options. Your Bond Originator will be able to broker a better deal for you. It’s very important to remember that the bond originator does not decide on the interest rate and amount. The loan amount and rate you get from banks depends on your credit record and score.
All you need to do is provide the originator with a copy of your identity document, 3 months income statements, 3 months bank statements and your signed Offer to Purchase.
They will evaluate the market and find a mortgage bond that suits your exact circumstances at the best or lowest rate possible. They submit the application forms and relevant documentation for you at multiple banks, saving you loads of time and money that would be otherwise lost to travel and repeated admin. It’s an efficient way to go as they handle all the follow-up calls as well.
Once they have all the final offers, they are presented to you to review and make the final decision.
The best possible reason to use the services of an originator is that it is absolutely free. The bank you choose to go with pays your originator a commission fee for referring your business to them.
If you’re finding it hard to make a decision about which company to use, get recommendations from friends and family.