August 16th, 2018 4:28 PM by Jackie A. Graves, President
1. What does a mortgage broker do?
professional mortgage broker originates, negotiates, and processes residential
mortgage loans on behalf of their clients.
2. What are the benefits of
using a mortgage broker?
broker represents your interests rather than the interests of a lending
institution. They act not only as your loan officer, but as a knowledgeable
consultant and problem solver. Mortgage brokers have access to a wide range of
mortgage products, a broker is able to offer you the greatest value in terms of
interest rate, repayment amounts, and loan products. Mortgage brokers will
interview you to identify your needs and your short and long term goals. Many
situations demand more than the simple use of a 30 year, 15 year, or adjustable
rate mortgage (ARM), so innovative mortgage strategies and sophisticated
solutions are the advantage of working with an experienced mortgage broker.
3. How do I ensure that I've
chosen the right mortgage broker?
the broker's experience and lender network, the better your opportunity to
obtain the loan product and the interest rate that best suits your needs. Be
sure to read their reviews online and see how long they have been in the
business before selecting your broker.
4. What documents should I be
prepared with when meeting with a mortgage broker?
broker will need to review all your financial information, such as: w2's, tax
returns, paystubs, bank statements, as well as various other documents that
pertain to your individual circumstances.
5. What kinds of loans are
broker most likely has access to every product the market has to offer. Most
mortgage brokers are approved with multiple lenders to ensure they can offer
every product available.
a. What are major differences to be aware of?
mortgage broker, you only need one application, rather than completing forms
for each individual lender. Your mortgage broker can provide a formal
comparison of any loans recommended, guiding you to the information that
accurately portrays cost differences, with current rates, points, and closing
costs for each loan reflected
6. Costs associated with
working with a mortgage broker over a bank?
broker is offered loans on a wholesale basis from lenders, and therefore can
offer the best rates available in the market, typically making the total loan
cost lower for the client.
7. How long does the process
take from start to closing on a home?
paper" borrower with good credit can close as fast at 15-21 days.
8. What setbacks should I be
The market is
hot right now so be prepared to compete with other buyers in the marketplace
and come in with a strong offer.
9. Are there any incentives for
first time buyers? (Lower down payment percentage, etc.)
are several down payment assistance programs available for first time home
buyers. Some programs will cover your down payment and closing costs.
10. Is there anything else I
should be considering when choosing a broker and committing to a loan?
advice would be to get more than one quote. More often than not, borrowers are
not shopping around, they are going with the lender that their realtor refers
to them and not shopping at all. Get two or three quotes before making a
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