What the Mortgage Broker Can and Can’t Do

why have a mortgage broker

For many people buying their first home is a daunting task and multi-faceted question for any smart first time buyer involves navigating through all facets of the home loan application. If you have no or little knowledge of the mortgage broker industry and you also have been looking for a nice mortgage calculator you will probably be grossed out at all the components and jargon that are thrown at you. In all the discussions, books and internet articles you will find little mention of mortgage brokers and how they can help you with your mortgage needs.

One thing to understand about the industry is that they do whatever it takes for you to reduce the time and money you spend when purchasing a home or if you are refinancing your current mortgage. You will find that many, many broker companies offer their services at discount rates and this discount translates in to a lower payment for you. We talked about that in our last article about the advantages of using real estate brokers in almost every market in the country.

Now the biggest thing that should be noted is that you can go directly to a mortgage broker if you don’t have one. Most borrowers have heard the joke about the loan officer that asks so many questions because he doesn’t really know if you even qualify for the loan. Well, any broker will be able to ask a borrower a hundred questions and throw a lot of those questions at you that will throw curve balls at you that are designed to trip you up. It is all part of the mortgage purchase process.

That doesn’t mean that real estate brokers can’t be helpful when you find one is a tremendous plus because when you are topping off your shorts you don’t have clear enough information to make the decision you need. When you have 20 loan offers from 20 different brokers you generally will be charged a higher interest rate as the lenders see you as a much higher risk than, for example, a borrower with perfect credit. Brokers charge a loan origination fee that is a percentage of your loan amount. How much higher that rate is depends on many variables including your credit score and the type of mortgage you are buying or refinancing. So how do you choose?

Looking at companies likedoors USA is the easiest way to find a mortgage broker. They market their network of mortgage brokers every where to bring the best combination of lenders to the consumer. Whether you are buying a home or refinancing an existing home loan look for company that is up to date with the current mortgage interest rates from all the mortgage companies. You will also want to base your choice on the type of mortgage that you are thinking about. If you want a 30 year fixed rate mortgage you want a company that has a good product and a sky-missile mailing list. Mortgage brokers are quick to tell you that you should shop around. While shopping around you should ask questions and look for a program that fits your time-frames. Each mortgage company is going to look at different things about you including your job, credit score, if you have kids or if you plan on living in the house and the house itself and its diminished value appraisal. Most brokers have access to over 100 different lenders so you shouldn’t have trouble finding a loan and a nice many lenders.

One thing people don’t realize is what type of service you are getting if you use a mortgage broker. Mortgage brokers are professional who have trained to ask all sorts of questions about your situation because that helps them get the best solution for you. They analyze your situation and know what lender would be most suited to helping you based on your major credit as well as other criteria. For example they have access to $200,000 worth of discounted hard money loans for rehab companies because that’s what they do. What a great way to get funding. A mortgage broker is usually able to bring you two or three program to choose from and then will work with the lender they can find the best one for you, sometimes one that isn’t even available to the person with the best credit. I think they are paid pretty well. You could also talk to a few of their competitors. When you don’t do this you may end having to pay 3 to 4 times higher mortgage interest rates.

If you can determine that you should use a mortgage broker then you need to grab the chance and learn all you can to prepare yourself and your family. Using a broker shows a lot about your finances and what can be the difference of qualifying for a home that you can afford and not. A mortgage broker is a professional and they are willing to help you create the life of your dreams. Please contact us today for your free appraisal of your home. You are only $25. Only ONE THE HOME YOU’RE LOOKING FOR.