Brokers often ask the same question first: how and when do I get paid? This guide explains the process at World's Fair Capital. It does not state any amounts, because compensation is set deal by deal, and you should confirm the details for your own situation.
Agreed before underwriting
Your compensation is written into the Letter of Intent that your client reviews and e-signs. That means it is agreed up front, before underwriting begins, so there are no surprises late in the file.
Paid at closing
When the loan closes and funds, your compensation is paid at closing through the settlement statement, along with the other charges on the loan. You can see it on the same document your client signs.
Your client stays your client
We work the deal with you, not around you. Compensation is only one part of the relationship, and protecting the relationship between you and your client is the other.
Questions to ask any lender
Whichever lender you work with, it helps to ask:
- Where is my compensation documented, and who signs it?
- When is it paid, and on which document does it appear?
- What happens to it if the loan structure changes?
Licensing and your own rules
Rules about who may be paid for placing a loan depend on your state, your license and the type of loan. Check with your own counsel or compliance contact before you rely on any compensation arrangement.