Good afternoon, everyone. Last week I gave you guys a ton of information on the Home Affordable Refinance Program (HARP)…if you didn’t get a chance to read it…you might want to take a peak.
This week I will keep it light…I don’t want to cause brain overload 2 weeks in a row!
Very simply, this week I will touch on why you should always use a mortgage broker vs. a bank to secure your home loan. Independent mortgage brokers have had a significant positive impact on the lending industry. Today, the use of a professional mortgage broker is one of the KEY strategies used by sophisticated borrowers.
What is a mortgage broker?
A mortgage broker is an independent real-estate financing professional who specializes in the origination of residential mortgage loans. Mortgage brokers normally pass the actual funding and servicing of loans on to wholesale lending sources. A mortgage broker is also an independent contractor working with (on average) as many as 50 lenders at one time. By combining professional expertise with direct access to hundreds of loan products, your broker provides the most efficient way to obtain financing tailored to your specific financial goals.
What do mortgage brokers do?
In the volatile home-lending market, mortgage brokers can serve as safeguards, offering their clients security, safety, and piece of mind. One of the broker’s most important functions is guiding your loan application through the entire process, constantly monitoring the component transactions for possible breakdowns. A professional mortgage broker can wade through the mountains of rate data and program options, researching current market conditions to find the most accurate and up to date information about cost-effective loan options.
There are literally thousands of variables that can affect the outcome of your mortgage transaction. That’s why you need a mortgage broker to act as a liaison between the title and escrow company, real-estate agent, lender, appraiser credit agency, the underwriters, the processors, attorneys, and any other services which may affect your transaction.
A mortgage broker also:
1) Discusses and explains financing program options
2) Informs you of lock options
3) Explains all documents of the loan application
4) Explains all associated costs of the loan application
5) Explains the disbursement of all loan applications
6) Explains the loan process, from application to closing
7) Provides you with a good faith estimate of all costs and fees
8) Communicates with you throughout the loan process in a timely manner
So…keep all this in mind when making your decision on who to call for your next home loan.
If I can ever be of service, or even if you have general questions, please call on me anytime!
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