You wouldn’t make a big financial investment without consulting with an expert, so why would you buy your dream home without talking to a mortgage professional first?
A licensed mortgage broker gathers your financial documentation and connects you with lenders to facilitate your loan. Here are just a few ways they can help you:.
Helping You Find the Right Loan
A mortgage professional knows a wide variety of lenders, which is beneficial when shopping for the best loan terms. For instance, if you have a high credit score, a broker may be able to negotiate lower interest rates or other terms for you.
Additionally, if you have a unique financial profile, like self-employment income, relying on assets instead of income or another category that falls outside the norm, a mortgage professional can help you find financing options. They have intimate knowledge of available loan programs and can match you with a lender that has experience in your specific situation.
If you are shopping around, ask a mortgage broker to provide references from former clients and examples of their work. This will give you a better sense of their expertise. Also, ask them how their fees are structured-whether they are charged upfront or rolled into the closing costs. Lastly, be sure to read all documentation carefully before signing. A few small mistakes can be costly later.
Getting You the Best Rates
You probably wouldn't invest in a large amount of stocks without talking to a stockbroker, and neither should you go into purchasing a home with no guidance. Mortgage professionals know the ins and outs of the mortgage lending industry, which allows them to find the right loan program for your financial situation.
They also understand that not all lenders are created equal. They can match you with lenders who offer the best rates based on your specific circumstances and credit standing. For instance, some lenders only work through mortgage brokers or only offer certain loan programs to borrowers with particular financial profiles.
These lenders may offer a professional mortgage, for example, for medical practitioners that allows them to use higher DTI ratios or exclude deferred student loans from the debt ratio. A mortgage broker can connect you with these lenders, which helps you save money in the long run. Mortgage brokers usually get their compensation from either the lender or the borrower, though federal law prohibits them from charging both.
Taking Care of All the Paperwork
The mortgage process can be incredibly stressful. Having a team on your side who can help you with all of the paperwork and negotiate terms for you can make the difference between a smooth closing and a nightmare.
Mortgage professionals deal with the loan processors and underwriters directly, and will take care of any problems that may arise during this phase of your home purchase. They also have access to the most accurate final numbers, so you can be prepared for your closing date.
Mortgage professionals are able to anticipate documentation needs and submit requests promptly, which can speed up the underwriting process. They will also answer any follow-up questions from lenders and keep you informed throughout the entire process. If you’re looking for a mortgage professional, be sure to ask for their standardized checklist and start gathering documents well in advance of your application date. This will help avoid delays and allow you to move closer to your dream home sooner.
Keeping You on Track
If you’re thinking about purchasing a new home, you’ll likely need to secure financing. A mortgage professional can help you find the right loan for your financial situation and assist with completing the mortgage process.
A good mortgage professional will be able to answer any questions you might have about the process, from how to apply for a loan to what fees are associated with closing. They will also keep you on track and informed about the status of your application.
When recruiting mortgage professionals, it’s important to focus on the key traits that will make them successful in the industry. These include communication skills, problem-solving abilities, and attention to detail. By identifying these skills in candidates, you can ensure that they will be a great fit for your organization.