Choosing The Right Real Estate Broker

Now that you have your real estate license, the first thing you need to do is get a real estate broker. Depending on the state, this process may start early if you’re required to have broker sponsorship when you take the real estate exam. Do not allow this to overwhelm you. The following are five tips on how to choose the right real estate broker.

1. Learn about commission splits

The majority of real estate agents are paid by commission. Make no sales, and you won’t get paid; however, when a purchase is made, you must give half of the commission to the broker that is sponsoring you. Not all broker commission structures are the same. Although some have salaried positions, this is very rare indeed. Many things can determine which broker to choose. For instance, items such as the company’s market share, resources, environment, reputation, and training opportunities may affect your decision. All of this is important, but make sure your chosen broker provides a satisfactory commission split. Understand that most divisions get better as you learn more and make more sales.

Exactly how does a commission split work? If you sell a home that sells for $300,000 and the commission is six percent, the buying and selling agents are each entitled to three percent. This means they have to split $18,000. Then you would have to turn around and cut your portion, which is $9,000, with your broker. If your agreed-upon split is 60/40, then you would get sixty percent of $9,000, which is $5,400. This is your share before taxes and expenses are taken out.

What is a satisfactory commission split? It depends on numerous factors such as real estate agents, the industry, and broker support and resources. Understand what’s going on when it comes to your commission split. Also, know that it should get more significant as time goes by.

Be advised that a lot of brokerage firms will offer you a salary with benefits, which is known as a hybrid model. As a realtor, if this sounds like a better deal to you, then look for companies that offer this type of payment option.

2. Research how brokerage firms work

Do your research before picking your broker. Do you know what type of company you want to work for? Do you want to work for a company that offers a sound support system? Brokerage firms are no different from regular companies. They have corporate environments, as well. Find one where you’ll fit in.

Do you want to work for a mom and pops company, or do you want to work in a franchised environment? Do you feel more comfortable in small intimate settings, or do you like a larger group environment instead? Talk with different real estate agents to determine if you like where they work and how their companies function.

3. Independent or franchise brokerage?

When deciding upon a real estate broker, determine if you want to work with an independent or franchise brokerage. Larger brokerages such as RE/MAX and Keller Williams have offices nationally. A smaller independent firm might only be located in a specific city or state. Although larger franchised companies are more controlling, they offer the average realtor more training and support than the smaller independent company. Smaller companies are usually located in one region, but they offer more flexibility.

According to the National Association of Realtors, 57% of all real estate agents choose to work for independent companies. If you love freedom and hate working in corporate America, then stay away from the larger franchise brokerages such as RE/MAX or Keller Williams. But, then again, if you love brand recognition and loads of support and training, you probably won’t be happy with a smaller independent brokerage company, says this website.

4. Research its reputation and target market

Pretend to be a buyer and perform a Google search for each prospective brokerage firm. Use the phrase “home for sale (your city of choice).” What results do you see? Not only do you want to find a broker that has a large market, but you also want it to be very credible and reputable. With a larger market, there shouldn’t be any problems finding leads. Obviously, a good reputation speaks for itself.

You should also be concerned about the brokerage’s niche. The right niche can help maximize your income potential. Factors such as your lifestyle, interests, and area opportunities can all impact the outcome.

5. Confirm that support is available

A good broker is hands-on and knows how to mentor you. It will provide free training and marketing collateral. Bad ones do nothing more than offer space for you to work on your own business opportunities. This type of brokerage may offer a few helpful classes or have random office meetings, but you’ll basically have to find your own success. Then, of course, there are other companies that may be a mix of good and bad. Thus, find the company culture that works best for you.

As a newly licensed real estate agent, it is imperative that you consider these five tips when trying to find the right real estate brokerage firm. This process includes doing a lot of research and speaking with plenty of real estate agents. Make sure you visit various brokerage firms and learn about their company culture and policies. This is the only way to determine which one can contribute the most to your success. Assess each company’s style of doing business and determine if it matches your expectations and goals.

Why is it important to choose the right real estate broker? Why should you take this whole process very seriously? You are a new realtor who is trying to learn everything there is about the real estate industry. You’ll have plenty of questions to answers because you have a lot of learning at this point. You need to have an experienced broker who can mentor and help with your training.

In the beginning, you won’t have enough money to generate leads, handle marketing, and conversion on your own. This is how a broker can help you during this time. Use his tools and guidance to put your real estate career on the right path towards success.

Choosing The Right Mortgage Broker or Brokerage

Purchasing a home is a major life event. Usually, a homeowner has more net worth than the average renter. However, this is only if that homeowner has the right kind of mortgage. Use the following four tips to make sure you get the best mortgage loan.

1. Pick the best mortgage for your needs

There are different types of mortgages. Some are government-insured. Some are eligible for government-sponsored sales. However, some of these do not fit into either of these two types.

There are different eligibility requirements for certain loans. It is important that you know and understands the following things:

  • USDA, VA, and FHA loans are all government-insured. If you don’t pay the loan back, your lender is protected. Chances are, lenders don’t require high down payments for these types of loans. In addition, they are easier to get, and they have good interest rates.
  • Fannie Mae and Freddie Mac loans are government-sponsored entities that get loans via a secondary mortgage market. A conforming loan has guidelines that are set by Fannie Mae or Freddie Mac. If a lender offers a conforming loan, it has to follow guidelines in reference to borrower eligibility, down payments, and loan limits.
  • A nonconforming loan doesn’t have Fannie Mae or Freddie Mac guidelines to follow. They are not easy to sell either. Beginning in 2018, loans that are more than $453,100 are nonconforming. Also, loans originated in Alaska, Guam, or the Virgin Islands that are more than $679,650 are also nonconforming. Most lenders have both conforming and nonconforming loans. Unfortunately, there aren’t that many loans insured by the government.

2. Know what the national mortgage rates are

Not only should you know what type of loan you’re looking for, but you should also know what mortgage rates to expect. Always shop around.

Many online outlets list national mortgage rates. For instance, the Federal Housing Financing Agency keeps a listing of rates for the last couple of months. This makes it easy to compare historical trends. If you know what to expect, you’ll know if a lender is trying to scam you.

But understand that if your credit is bad, you won’t get the best interest rate. Improve your credit rating before applying for a mortgage loan. Pay down as much debt as possible, and always check your credit report regularly for mistakes.

3. Make lender comparisons

If you know what rates to expect, and your credit is good, start looking at different lender loans and make comparisons. Use the internet to research each prospective mortgage broker and compare your options for financing your home.

Make sure you’re not comparing apples to oranges when analyzing different lenders. Evaluate the following things:

  • Interest Costs- A lot of lenders display interest rates as APR. This is an annual interest that does not take compounding into account. Other lenders will use APY instead of APR. This means interest is paid over time and accounts for how often it will be added to the principal. APR is normally lower than APY.
  • Points- It’s possible to pay points to get a lower mortgage interest rate. Each point is the equivalent of one percent of the loan amount. This decreases your interest rate. For instance, one point may be a reduction in the rate of .25 percentage point. If two lenders want to offer you the same interest rate, but one of them says you must pay points, the rate with the first one will be lower.
  • Loan fees and origination costs- Most loans have added fees such as those for appraisals, origination, and even credit checks. If you have to pre-pay more on one mortgage than another that is similar, then you should probably avoid doing business with that particular mortgage lender.
  • Loan term- The average home buyer will choose either a 30-year or 15-year mortgage loan. If you choose the 15-year loan, your payments will be higher, but you’ll pay less interest.
  • Fixed or variable rates- Your monthly payment and interest rate won’t change during your mortgage duration if you choose a fixed rate. If you get a variable rate, your payments and rate will be lower at first but will go up as time goes by.
    Get a loan that suits you. If you’re going to live in your home for a long time and don’t want to assume a lot of risks, then get the best-fixed rate loan you can find.

4. Check out a prospective mortgage broker’s reputation

Make sure that a prospective mortgage lender is well-liked by its current and past borrowers. You want to be treated fairly and not fall into any traps. Some of the main things that you want to look for in a prospective mortgage broker are the following:

  • How hard is it to get a loan with this mortgage lender?
  • How long does it take to close the loan?
  • Does the mortgage broker provide good customer service?

Chances are, your mortgage will be sold to another loan provider once it goes through the closing process. But make sure your chosen lender has a good reputation. This is the best way to ensure that you’ll get treated right during the mortgage closing process. Choosing the right mortgage lender is very important, even if your loan is eventually sold to the next service provider. You want to start your mortgage journey on a good foot.

It is imperative that you get the right mortgage and choose the best mortgage lender. It will take years for you to successfully pay off your mortgage, which means paying the lender plenty of money in interest. Get the best loan for your situation, and cut down stress overall.


We Are Licensed To Do Home Loans

Anywhere Within The State of Colorado


     Dependable Mortgage in Grand Junction is committed to helping you find the right home loan product for your needs with the lowest rate.  Because every borrower is different, we offer a variety of products to meet your individual requirements.  We make the process of securing a mortgage simple and straight forward by offering you the latest in financial tools that enable you to make sound financial choices for your home loan.

     I offer you over 30 years of home loan experience in western Colorado.  Because we don’t have high overhead, I can control what we make and have room to negotiate a better deal for you, which means the lowest possible rate, and more money in your pocket.

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So, before you lock somewhere else, let’s talk, because there’s a good chance we can get you a lower rate.

     In addition to residential lending, we can also do commercial lending anywhere in Colorado.

     Whether you are starting out and are a first time home buyer, a veteran, investor or want to refinance, we can do your home loan.

     We still believe in good old fashioned, friendly, professional service . . . and being dependable.  We will answer any of your questions the best we can. After all, buying or refinancing your house we consider to be very important and is usually the biggest transaction a person makes in their life.