You have a short list of your dream homes and now you are looking for the best mortgage so you can finally get those keys in your hand. There is one effective way to do it. Work with a mortgage broker who can help you throughout the whole lending process, from beginning to the end.
You may have heard about mortgage brokers from friends who have bought a property or from your real estate agent. What does a mortgage broker do and how is he different from a loan officer. Listed below are five of the most important things you need to know about mortgage brokers.
What Is A Mortgage Broker?
A Myrtle Beach mortgage broker serves like a middleman between you and a lender. His job is to work on your behalf with different banks in an effort to find the most suitable mortgage lenders who will fit your needs and offer the lowest and most reasonable rates. Mortgage brokers have an established network of lenders they work closely with, which will make your life much easier.
Mortgage brokers are licensed as well as regulated financial professionals. They will do all the legwork including gathering important documents, pulling your credit history, as well as verifying your employment and income. They will use all the information they have gathered to apply for loans on your behalf with different lenders in the shortest time possible. Once you have settled on a certain loan, your mortgage broker will work with the underwriting department of the bank, the closing agent, as well as your real estate agent to make sure that your transaction goes smoothly until the closing day.
How Do They Get Paid?
Mortgage professionals charge a commission just like most sales experts. They charge what they refer to as a loan origination fee. There are some cases when mortgage brokers bargain for a no cost loan so that you don’t have to spend anything upfront. Instead, the lender will pay him once the loan closes. However, selecting a no cost loan to reduce your out of pocket expenses could also mean that you have to pay for higher interest rates.
Loan officers are different from mortgage lenders. The former works for the lender and are paid by a certain set of salary plus bonuses. Mortgage brokers on the other hand, work independently or within a mortgage brokerage firm, deal with different lenders, and earn mostly through commissions.
Benefits Of Hiring A Mortgage Broker
A mortgage broker will do all of the needed work on your behalf and as your concierge. He or she will apply for mortgage loans with different mortgage lenders on your behalf. The broker will also do their best to find the lowest mortgage rates, negotiate terms, and get the approval you need so you can buy your dream home.
What Are The Drawbacks?
It will cost you around 1% of the loan amount to pay for the services of the mortgage broker that you hired. If you are thinking of looking for lenders yourself, always remember that it is a grueling process that could eat up a lot of your time and effort. Hiring a broker can likewise narrow your access to a few large lenders. After the housing collapse, there were some banks that stopped working with mortgage brokerage companies and ditched wholesale mortgage lending. You can deal with this potential difficulty by working with an individual lender directly especially if you are already doing personal banking with that certain lender. You might even be able to get better terms as well as a lower rate.
Call MB Mortgage Pros if you are looking for a reliable mortgage broker.
MB Mortgage Pros
630 Chestnut Road
Myrtle Beach, SC 29572