In some cases, a mortgage broker will require a fee to arrange a mortgage. This is generally done when the borrower has a poor credit rating. The broker will have to do additional work to make sure a loan is in place for the buyer.
The home buyer may not have the mortgage broker's fee. Since their credit rating is less than perfect, coming up with the minimum down payment could be a struggle. They also have their real estate lawyer's fees and other closing costs to accumulate.
The way to handle a situation like this is to insert a clause in the offer that states that the seller will pay the mortgage broker's fee. The seller will consider this to be part or the entire amount they would budge off their asking price. In fact, the buyer might have to pay the full price of the home. Should the parties agree to this arrangement, the seller will insist to include in the clause that they will only pay up to a maximum amount.
If you are a buyer and are faced with this situation, don't be afraid to include the clause in your offer. After all, an offer is an offer. The seller might be keen to allow an arrangement like this.
So on closing day, the seller pays the mortgage broker. We now have 3 happy people. The buyer, the seller and the broker. It's a win/win/win situation for everyone.
HomesByOwner of Durham Region recommends that all buyers and sellers of real estate consult with a lawyer prior to entering into an agreement.
Find out more about buying or selling real estate at our Durham Region Home For Sale website.
We don't get paid unless the deal closes. Sounds like a good way to do it