Is A Mortgage Broker My Best Choice?

By admin | Sunday, 12/13/2009

The time has come that you are now purchasing a new home and need a mortgage. Possibly, with mortgage rates at their historical lows, you decide that now is the perfect time to take advantage of refinancing to lock into a low interest rate and start saving money.

Maybe you would even like some cash in hand to make those much desired home improvements. Whatever your needs, you now have a decision to make; what is your next step and who do you call? On every street corner there are Banks advertising that they do mortgages. You have another option, and that is to pick up the phone a call a licensed mortgage broker.

Remember, you the consumer, always have choices. This is your home, your money and YOU and ONLY YOU are the one paying that monthly mortgage payment! No one borrower or loan will ever fall into the same ‘cookie cutter’ pattern.

There are many advantages having a reputable broker working for you. Once a broker has taken your personal information (credit, income, and job history) and what this mortgage is going to accomplish for yourself, they will search among many lenders for the best rates and terms that meet your specific financial requirements.  In today’s lender market, guidelines are different from two or even a year ago. Lenders are requiring clients to have higher credit scores, lower debt to income ratio’s, and full income documentation (W-2 income and pay stubs or 2 years self employment with Tax Returns).

Obtaining a mortgage is probably the biggest and most important financial decision you will make in your lifetime. There is absolutely no room for error’s to be made.  Nervous?  Don’t be. Although you might think going though the qualifying stage of finding the perfect mortgage for yourself can be a nerve racking process and if you have selected the right broker to work with. In actuality, the entire process should really be educational, informative and stress-free.  A good mortgage broker will always give you more personal attention than if you go through a large retail banking institution. It’s extremely important to be assured that your broker will always be available, patient enough to listen, and even address the minute questions you might have.

Mortgage rates fluctuate daily. The wise consumer is someone who will shop around for the best rate and program to fit their specific goal. When shopping among a couple of Broker’s, the best way to comparable shop is doing it on the same day. This is the most accurate way to see what the broker can deliver as far as the rate is concerned and what closing costs will be associated with the loan.  For example, if pricing out on a Monday and then calling another broker 2 weeks later – there could be a difference in rates you are quoted. This is due to current market conditions. Another thing to understand is that since no two borrowers are identical, sometimes, it’s not always about the rate.

You as the consumer need to do your homework when selecting the person you are entrusting to do your financing. Just as you are qualified from the Broker/Lender, you basically have to do your own qualifying of your broker to see if you feel comfortable with them, satisfied with the product they are delivering, and if you feel confident that they will be there for you 100% from start to finish. One also needs to understand, even with mortgage rates as low as they are right now, sometimes it’s not always about a rate.  Simply put, pricing is based on a borrower’s credit score and the loan to value of the property being financed. To answer the question, Is A Mortgage Broker My right Choice? Yes, I seriously believe it would be the best choice to make.