What Is The Difference Between The Real Estate Agent And Mortgage Broker?
Since Property Search Agents and mortgage brokers are involved in assisting buyers to obtain properties, they may seem to share similar job features. However, the real estate agent is usually involved in assisting the buyer or vendors to get or sell physical property respectively, while the mortgage broker will be involved in the actual purchase of the property.
Real Estate Agent
The attributes of a successful real estate agents include; an outgoing personality, trustworthiness, flexibility, maturity ,willing to go an extra mile ,persuasive ,creative and able to focus on positive features of the property.
Some of the duties performed by the agent may include; showing properties and homes (if he is working for the buyer) or looking for properties and homes to sell (if he is working for the seller), provide guidance on financing, make follow-ups and updates on the local market while acting as a link between the buyer and seller.
A good background in sales and marketing plus a high school diploma is the desirable qualification for agents. It is also crucial to have addition training in financing or housing laws. Real estate agents are required to be licensed.
Most agencies compensate their agent with commissions based on predetermined percentages after sale. This explains why real estate agents’ earnings increase with experience.
Mortgage brokers are usually involved securing loans for their clients at favorable terms and affordable rates for the purchase of property. Part of their work will involve researching on prevailing interest rates and their respective loan terms. There are brokers who have relationship with their favorite lending institution; however, they are required to work for the customer’s best interest.
It is paramount to be equipped with knowledge on lending institution, lending rates and loan terms, when engaging financing institutions for the best mortgage. Proficiency in math, communication and writing skills is an added advantage coupled with credit worthiness criteria and credit reporting.
Attributes of a competent Mortgage broker include; flexibility to accommodate customers’ schedules, outgoing, friendly and ready to go an extra mile. Patience is also paramount, as a mortgage broker may take some time to find financing institutions that are ready to work with their clients. Patience is also important when it comes to handling rejections from various lending institution.
Sales or Marketing and finance in banking are a prerequisite for competitive mortgage brokers. To obtain a mortgage broker’s license requires a minimum of high school diploma, after which you are required to get a National AFE Mortgage Loan Originator Test. This test enables you to have a thorough understanding of Rules and Regulations governing the locality you are working in
Mortgage brokers are usually paid salaries plus commissions based on predetermined rates on the mortgage secured. The compensation rates can be found in PayScale.com for 2018, which shows the industry’s average rates. However, there are experienced mortgage brokers who may earn more than the average figures while others earn less.