Why You Should Consider Working With A Mortgage Broker

If you’re shopping around for a mortgage, consider enlisting a mortgage brokers services to help you find the rates and terms ideal to the individual consumer. After the 2008 crash involving the real estate market, brokers are scrutinized to ensure they’re acting ethically and with the best interests of consumers in mind. A mortgage broker with experience can bring customers excellent results. However, there may also be some disadvantages to be considered before working with one.

Advantages of Working with a Mortgage Broker

It Saves You Time and Effort

Being in constant contact with various banks and lenders, both household names and those lesser known, mortgage brokers have ideas you never even thought about. Plus, as a bonus, an experienced broker can protect you from some unscrupulous lenders with hidden terms that would cost you more. The important thing is to work with a reputable broker, so do your research before meeting with one. Look into average mortgage rates and use a mortgage calculator readily available online. These tools can help you clearly see and compare rates, so you know a bit more on the subject before you have your meeting.

Mortgage Brokers and Their Exclusive Lenders

It may surprise you to know that some lender actually works privately and exclusively with brokers who are encouraged to bring a certain clientele to them. This means you like wouldn’t have any access to these lenders without the mortgage broker. Additionally, special rates may be given to brokers for the sheer volume of loans they generate, meaning they can provide their clients with lower interest rates!

Save Money and Fees

Numerous fees exist in new mortgages or new lenders, such as application, appraisal, and origination fees. Sometimes, brokers can even encourage lenders to waive certain fees so that you can save thousands of dollars in certain cases.

Disadvantages of Working with Mortgage Brokers

Conflict of Interest

The actual goal when mortgage shopping is finding a loan with the best terms – lower fees and interest rates. Consider that this is usually a long-term commitment. On the other hand, mortgage brokers make their income from fees the lender pays them for the business. The fees are based on loan amounts and generally differ from one lender to another. In other words, the mortgage broker’s goal is to get the best compensation. Not surprisingly, many brokers were found acquiring mortgage loans their clients simply couldn’t afford – something revealed in the real estate market crash in 2008.

It May Not Be in Your Best Interest

Brokers aren’t always better, and they don’t always find better deals than a client can obtain on his own. It’s not uncommon for home buyers to be offered the same interest rates and terms as are offered to mortgage brokers by lenders. Therefore, it could be in your best interest to shop around and ensure you’re actually getting the best deal possible. With a mortgage calculator, you can easily fact check your broker’s deal.

There Aren’t Always Guaranteed Estimates

A mortgage broker usually provides an initial estimate or offer from a lender, in what is called a “good faith estimate.” Though it is believed to stand and incorporate the terms, it is not guaranteed. Therefore, there are some instances where terms are altered by the lender, leading to more fees or higher interest rates.

Not All Lenders Work with Brokers

Since the crash of 2008, to protect themselves more, some lenders are eliminating the mortgage broker, as direct lending was found to be more successful and less likely to default. As such, you may not be able to benefit from direct lenders, who sometimes, have better deals to offer than those offered by brokers.

The Reality of it All

You can benefit greatly from working with a mortgage broker, but before committing to one, weigh the pros and cons. Do some research on your end by contacting lenders yourself to get a better understanding of mortgages and what’s available. Every situation is different, but doing your homework will reveal the best solution and the best broker who can provide references and guaranteed loan estimates, so there aren’t any unpleasant surprises for you down the road.

Learn more about the contributers:

DLC Origin Mortgages
2608 Granville St #550, Vancouver, BC V6H 3V3
(604) 614-2382
http://bc.communitylendingcentre.com
Vancouver Mortgage Broker

Your San Diego & La Mesa Mortgage Lenders

Purchasing a home and acquiring a mortgage is one of the largest financial decisions most people will ever make. There are many options available and using a mortgage professional can ensure that you are making a smart financial decision while getting a good mortgage rate. I know that every individual’s situation is different and utilize my experience and connections to ensure that my clients get a mortgage product ideal for their financial situation. The process may also seem daunting at times. With so many options available, each with unique details, it is easy to become confused or uncertain of your choices. Not to mention that many mortgage lenders are known to take advantage of this and will filter the information they give you in order to benefit themselves in the long run. This is not how we work. We work FOR you and are only satisfied once we know that our clients are completely satisfied. Make the most of your American Dream with home financing from your trusted American Financial Network San Diego Mortgage Lender.

Mortgage Products and Services

We offer our clients a variety of mortgage related products and services at competitive San Diego mortgage rates!

Home Purchase Loans

Loans that are acquired for the use of purchasing a property or house. These loans are usually offered at either a fixed or variable interest rate which is added to the monthly principal payment.

Refinancing

The process of securing a new mortgage to reduce monthly payments, usually by reducing the interest rate.

Loan Programs

Conventional Loans – Mortgage loans that are not guaranteed or insured by the government. FHA Loans – Mortgage loans that are insured by the Federal Housing Administration. VA Loans – Mortgage loans that are guaranteed by the United States Department of Veterans. HARP 2.0 – Mortgage program that is backed the United State government to assist homeowners with refinancing their existing mortgages. Jumbo Loans – Mortgage loans that exceed conforming loan limits that have been set by the Federal Housing Finance Agency. Reverse Mortgages – Mortgage loans that are available to homeowners who are 62 or older and wish to obtain cash without selling their home.