When it comes to buying or selling a house, there are two jobs that people think of, which happens to be a mortgage broker and a real estate agent.
But even though they have similar job attributes, they differ quite a lot from each other. Being an important component for the construction industry, both a mortgage broker and a real agent play their selective roles.
But despite the similarities, these two jobs aren’t the same. A mortgage broker is much more different than a real estate agent. But to know the differences they share, it is important to search the depths of who they are.
Who are Mortgage Brokers
Acting as an intermediary between a lender and borrower, a mortgage broker is an independent and licensed financial professional. Evaluating a home buyer’s interest, mortgage brokers represent their clients with multiple research of financial loans and terms. Educating you about various distinctions of loan products, your broker will find you a suitable lender according to your demands.
Mortgage brokers will arrange your necessary loan types and manage your finances. They usually decode all the relevant documentation of finances like proof of asset, proof of income and tri-merge credit reports to their clients. This enables the clients to secure their finances within their limitations along with finalising the purchase of new properties.
With that being said, what we understand is that a mortgage broker helps you settle your finances by managing loans with new properties along with all the necessary documentation, which is not similar to a real estate agent.
Who are Real estate agents
To keep it simple, real estate agents are licenced professionals that help any buyer or seller to sort out their real estate transaction. While brokers are independent, the real estate agents represent both buyers and sellers when it comes down to the real property. The work put down in being a real estate agent is incomprehensible compared to its work sections.
There are two options that a real estate agent receives while working, which are buyers and sellers. If you are a buyer, then the agents work in determining a selective property within your budget while working closely with you. Educating you on the market conditions and evaluating your options, real estate agents will find you available properties that are suitable for you. Other than that, your agent will also help you sort out negotiations and provide you necessary support after you finalize the selection of your desired property.
And as for the sellers, real estate agents are a massive game-changer for them. Agents help find connections as they have access to all other properties listed by other agents. Real estate agents also help you find appointments and settle all queries which are very important for any seller.
With that being said, you now know what a real estate and mortgage broker is. But what makes them different from each other?
Differences between Mortgage broker and Real estate agent.
The responsibility of a mortgage broker is to negotiate, do arrangements and organize real estate transactions. A broker can also own real estate corporations and manage agents, which is one of the key differences between a mortgage broker and a real estate agent.
The real estate agent’s core responsibility is to rent, buy or sell property on behalf of a client. Whilst a broker can own real estate firms, a real estate agent focuses on buyers and sellers managing properties.
The income of both these professionals varies from each other for its attributes differences. The range of compensation of a broker is from $36,000 – $138,00. With a bonus of $493 – $35,000 according to recent year reviews.
Whereas the range of compensation of a real estate agent is almost $24,000 – $106,000 with bonuses up to $999 – $31,000. These are the estimated ranges of a real estate agent cited from the most recent figures. After making a sale, agents are also compensated with a commission.
To become a mortgage broker it is necessary to take a qualification in mortgage advice, that develops their skills for qualifying into the industry. Even though there are no fast and hard requirements to become a broker, it’s important to do training.
Whereas for a real estate agent, it is necessary to pass a real estate license examination. Without a licence, you cannot become a real estate agent. However, the age doesn’t matter and requires you to be at least 18 or 19 years old depending on the state.
One of the key differences between a mortgage broker and a real estate agent is their capability of independence. A mortgage broker is a broker that has the capability of managing real estate firms independently.
But the real estate agents cannot work independently. They are required to attach their licence to any brokerage firm.
5. Primary duty
The fundamental duty of a mortgage broker is to research the market and financial position of a potential borrower to determine a source of mortgage product that will be suitable for the client.
On the other hand, the real estate agents have the flexibility of coordinating meetings while managing properties for desired buyers or sellers.
With all due differences between a mortgage broker and a real estate agent, it’s a matter of question which one is better than the other.
Is a mortgage broker better or a real estate agent?
Even though both these individuals play an excellent role in managing properties according to their job attributes, according to most individuals’ experience they choose to become real estate agents. And the reasons are:
- Additional income along with salary
- Gaining access to larger links
- Expansion of network contact
- Earning commissions
- Expanded business knowledge
Buying a home is one of the crucial and most important investments of a person. And that’s why it is necessary to follow a proper guide and take necessary action.
And that’s when these individuals, be it a broker or an agent, dedicate themselves into guiding you through the initial process of handling properties with proper loan management and network.
Whether you are looking to buy a new house or sell it, both a mortgage broker and a real estate agent play their individual roles.