How a mortgage broker can add more value and get you a better home loan deal
The home buying process can be an incredibly complicated process because there are so many different things to consider. You have to negotiate the price, arrange financing, and close on the deal in a relatively short period of time. A real estate agent alone is often not enough to resolve all of the issues. There are other real estate professionals which can do a great job. Let’s take a look at one of the most valuable professionals.
What is a Mortgage Broker?
The professional in question is a mortgage broker. A mortgage broker is a financial intermediary that handles many details of the retail estate transaction for individual home shoppers and companies searching for commercial real estate. Mortgage brokers specialize in walking home buyers throughout the entire home buying process. They help the buyer put together the best loan application possible and work with them throughout the approval process.
When I was in Iraq we purchased our first home (yes, while I was in Baghdad) and without our local mortgage broker, there wasn’t any way that we could have pulled it off. He was able to educate us on the VA home loan process and get us the best mortgage rate possible.
The primary job of mortgage brokers is to help their clients get the best deal for their money. Mortgage brokers provide a variety of services from credit assessment to walking borrowers through the settlement process. Mortgage brokers make sure that the loan product is absolutely suitable for the client based on their income and credit. They perform a number of helpful tasks including obtaining the credit report and detecting any problems before they initially arrive.
Mortgage brokers help prospects buy homes for sale. Mortgage brokers also increase the chances of a borrower obtaining a loan and at the interest rate that they are looking for. They help with the entire data collection process including gathering pay stubs, W-2’s, bank statements, and any other financial data that is needed. This is an absolutely critical task considering how much more selective that banks have become in financing mortgage loans.
Disadvantages of Using a Mortgage Broker
One of the biggest advantages of using a mortgage broker is the large amount of potential financing options at their disposal. Mortgage brokers deal with large, medium, and small banks in order to find the right loan amount and interest rate for your home. This saves you time and money because it keeps you from shopping your loan yourself all over the place, especially in large areas. Mortgage brokers can often get you financing when you may be having a difficult time finding you on your own.
Most mortgage brokers help clients save money on their loans and get a better deal on their home purchase. They are used to handling both traditional loans and jumbo loans as well. Brokers can advise you as to whether a fixed rate loan or adjustable rate mortgage is the most appropriate option for you. Mortgage brokers have a fiduciary duty to meet the needs of each and every client.
Now you can see why mortgage brokers are such a valuable resource for anyone buying a home. You don’t want to wind up paying a whole lot more for your house than you should. A mortgage broker will make sure that you get the right interest rate and pay the right price for your home purchase.
Have you had an experience with a mortgage broker? Good or bad?
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