Understanding Representations: Is your Broker Speaking on your behalf?

The quick answer to this question is a no. Although upfront, the broker could act as a bridge between you and the lender, in reality, s/he is looking after his/her own sake. In other words, the broker will only spruce up the image of the lender or borrower who pays the right price.

While your broker scouts “on your behalf” theoretically, in reality, s/he can’t guarantee you the best deals in the market. What the broker can give is a wholesale price tag. You probably won’t do well as a borrower flying solo in the open market because you don’t have the benefits of a broker who can bring in 10 to 20 borrowers to a single lender.

The best thing you can do is look for a good broker that can offer competitive rates. You can ask for referrals from friends or relatives, so you can more or less catch a glimpse of the broker’s capabilities as a professional.

Don’t entrust your life to any single broker or bank though. The best technique of getting good mortgage deals is still research. Conduct your own research, so when you deal with a broker, s/he knows that s/he’s dealing with someone who’s well educated about the real estate business.

A word of warning: real estate people can smell a food from miles away. You wouldn’t want them to take advantage of you just because you were too lazy to watch your own back.