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A commercial mortgage broker's duties at the closing table are, most of the time, much like the role of a presidential nominee. If you're feeling almost expendable as you sit at the closing table, if you're being treated as unessential baggage, that's because, unlike everyone else, you've gotten almost all of your work out of the way beforehand. Congratulations! On the other hand, if you're very busy and important at close, that's not a good sign for anyone! That means that there are a lot of loose ends to tie up.
So let's say your closing is going well--extremely well. There are still a few critical things left for you to do.
First, as Ambassador Korologos advises, show up on time (more or less?). Try not to spill coffee on yourself along the way, and bring a copy of your invoice and of your engagement letter with you (in case there is some unclarity with regard to your fee). Then turn off you cell phone, be pleasant, stay out of the way and give up your seat to the elderly, pregnant or disabled and any legal type person who needs your space.
And try not to fall asleep because at some point, a settlement sheet will be passed around for various dignitaries to sign?you're not one of them. Nonetheless, you must ask to see it, and you must inspect it carefully to make sure that your company's name is on it and that the amount to be credited to you at closing matches your invoice. Look for your front and back end points, if applicable. These appear on different places on the statement. If the numbers are off, ask the lender's attorney for an immediate correction.
That's really the only semi-technical task you should be doing at the closing table. Of course, if the closing ?blows up? in your face, you might end up dealing with any number of issues, including negotiating with the title company, the lender, attorneys on either side, and of course, your own client. In situations like these, of course, you could end up dealing with anything you didn't adequately resolve before the closing.
Mark Yoffe is the president of MarCapital Inc., a commercial mortgage brokerage firm. His practice specializes in bridge loans and in complex commercial transactions in addition to more conventional commercial mortgaged backed securities deals. Mark works closely with accountants, brokers, and real estate attorneys and other professionals in an effort to structure highly competitive and tax-advantageous transactions for his clients. In addition to handling his own caseload, Mr. Yoffe personally oversees the firm's continuing education program and is a distinguished and sought-after guest speaker at many notable real estate institutions. Mr. Yoffe's articles have been published in the New York Real Estate Weekly and the Commercial Mortgage Insight, among other publications. Mark lives with his girlfriend in Manhattan and can be reached at (mailto:yoffem@hotmail.com).
Are you undecided about using the services of a mortgage broker or sceptical as to what a mortgage broker can do for you? The purpose of this article is to clarify the many advantages and benefits you will receive when using the services provided by mortgage brokers in Canada. I am optimistic that after reading this article Canadians will have a much better understanding about the services provided by a mortgage broker, and will consider using a mortgage broker for their mortgage financing needs.
What exactly is a mortgage broker?
Basically, a mortgage broker is a representative for all of the Canadian lending institutions in Canada. Their function is very similar to that of an insurance broker. A bank representative that works in one particular lending institution is employed by that bank and is aware of every mortgage product that their bank offers. Therefore, when you go into your bank for a mortgage the representative analyzes your situation and chooses the best product their bank offers for your needs. Mortgage brokers act as agents for all Canadian banks, Credit Unions, Trust Companies, finance companies and individual private lenders. Subsequently, when you visit a mortgage broker for mortgage financing they analyze your specific situation and choose the best product from one of the 50 Canadian lending institutions at their disposal.
In Ontario, mortgage brokers are educated professionals who are licensed and regulated by the Financial Services Commission of Ontario (FSCO). FSCO is merely one of the government agencies that monitors the business practices of mortgage brokers, each province has an agency that provides the same service to Canadians. As a result, these agencies certify that Canadians are being given reliable protection, a thorough comprehension of mortgage products, and a standard of service to meet their individual needs.
So, how exactly will you benefit by using a mortgage broker?
Save time: Many people try to shop around their own mortgage by traveling to the 5-6 major Canadian retail banks, which can be very time-consuming. A mortgage broker will meet you where it's convenient for you and they will shop your mortgage for you saving you a lot of valuable time.
Credit Score: One of the most important considerations for Canadians when shopping around at different banks is their credit score. Each time you go to a bank and apply for a mortgage, they will make a credit inquiry, too many inquiries will negatively affect your credit score. A mortgage broker only requests one credit inquiry and then forwards that to the banks they are shopping.
Save Money: Many people are under the false assumption that it is expensive to use a mortgage broker. In fact, most brokers do not charge any fees because they are paid by the banking institutions for bringing them in business. That's the best part, you receive unbiased advice about your mortgage and it doesn't cost you any money.
Best Rates: Using a mortgage broker guarantees you that you will get the best rates available, independent mortgage agents rely on repeat business so they do not play games, they always find their clients the best rates possible. Additionally, as a reward for bringing them millions of dollars per year in business, many banks will offer special rates only available to mortgage brokers for their clients.
Fast Approvals: Usually, a mortgage broker will have your mortgage approved within 24 hours, at the very best interest rates. Even if the retail banks do approve a person's mortgage fast, it can sometimes take weeks to negotiate them down to their best rate.
Feel At Ease: A mortgage agent will take the time to explain the entire process to the mortgagee, this is especially comforting for first time homebuyers. They will take the time to explain all of the terms and conditions of a mortgage commitment so there are no surprises later. They will usually present more than one option for clients, and be able to explain the differences between each bank, this will help consumers make educated choices about which banks they would rather use.
Where will your next mortgage financing experience be?
Today, it is no longer necessary for Canadians to place their trust blindly in their bank for their mortgages. There is now a vast amount of information available to consumers, with all of the available information it is advantageous for consumers to use the services of a Canadian mortgage broker to help them analyze which products will best suit their needs. Canadians should realize that by using a mortgage broker they are not choosing between a broker and their bank. A mortgage broker can place your mortgage with your bank if that's what you ultimately decide. What you should ask yourself though is if you are a client at TD Bank do think the bank representative will tell you if Scotia bank has a better interest rate? Your mortgage broker will.
About the Author
Penny-Ann Lupton is a mortgage specialist with Real Mortgage Associates, she is enthusiastic about working with homeowners to assist them through the process of a "> purchasing a home.
Penny-Ann will assist homeowners in aquiring information about