What is a Mortgage Broker?
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Mortgage brokers are professional consultants who help home buyers locate the appropriate loan product and lender. Because they have access to more lenders and products than loan officers at banks, mortgage brokers can assist homebuyers in finding their dream loan at competitive terms.
Finding an experienced mortgage broker will save both time and money when purchasing your home. To locate one, ask your real estate agent for referral or conduct an online search.
They do the legwork for you
Mortgage brokers do all the legwork for you by searching for loans tailored specifically to your needs and financial circumstances. Furthermore, they offer guidance to help explain the application process and get approved more easily.
Brokers act as fiduciaries and put your best interests at heart when selecting lenders for you. They can steer clear of those offering unsuitable payment terms or who refuse to accommodate your unique circumstances.
They receive commission from lenders, but this won't change your final rate or fees.
Indeed, working with a mortgage broker could even be more advantageous to your loan application process than approaching lenders directly.
As part of your research when selecting a mortgage broker, ensure they possess the appropriate qualifications and licenses. Double check if they're listed with the Nationwide Multistate Licensing System & Registry as well as reviews from previous customers.
They save you time
Mortgage brokers are experts who assist borrowers in finding mortgage loans. Working with multiple lenders, mortgage brokers may offer access to a wider variety of products and terms than working directly with lenders themselves.
These professionals also save you time by streamlining the loan approval process. They'll assist with gathering paperwork, submitting it to an underwriter, and scheduling an appraisal appointment for you.
As part of their services, these experts also make lender recommendations tailored to your unique circumstances and needs. For instance, they could suggest lenders who specialize in loans tailored specifically towards self-employed borrowers.
Your lender knows the fees they impose, and can request that any that are unneeded be waived on your behalf to reduce overall mortgage costs.
They can help you find a loan that fits your needs
No matter your financial circumstances or timeframe for applying, mortgage brokers are available to find loans tailored specifically to your needs. Their access to lenders might otherwise go unused and they'll steer clear from onerous payment terms that might make repayment difficult for you.
Mortgage brokers may also help you obtain better rates than what's available online, since they work with multiple lenders who may offer you lower interest rates.
They can also assist in finding the ideal mortgage product to meet your unique financial situation, like bad credit loans or FHA home loans. Plus, they may even waive or reduce mortgage fees and save you significant sums over the lifetime of your loan.
A good mortgage broker will understand both your current financial status and future plans for using your new home, providing options and their associated pros and cons as well as taking into account timelines to provide an estimate on when closing will take place and you can take possession of your new place.
They can save you money
When purchasing a home, finding the best loan is key to saving money and finding an appropriate loan that fits your needs and offers competitive interest rates. Mortgage brokers can assist in this search process and can assist in finding loans tailored specifically to you that can save you money over time.
Mortgage brokers frequently have access to lenders not normally accessible by the general public, offering more suitable loans for borrowers like freelancers who may not qualify for traditional loans.
Mortgage brokers can save you money in several ways. One is by negotiating with lenders to have certain fees waived – these could include application, appraisal, origination, credit check and underwriting fees.
Dodd-Frank Wall Street Reform and Consumer Protection Act has implemented regulations restricting mortgage broker fees, making it harder for them to charge borrowers significantly higher commission than expected. Still, their fees can add up over time and become costly.
Steve Wilcox W/Primary Residential Mortgage, Inc.
Mortgage brokers are professional consultants who help home buyers locate the appropriate loan product and lender. Because they have access to more lenders and products than loan officers at banks, mortgage brokers can assist homebuyers in finding their dream loan at competitive terms. Finding an experienced mortgage broker will save both time and money when…