When you are purchasing a new house, consider getting a home mortgage loan. Here, your new house is taken as collateral. Mortgages involve a mortgagee (bank or a financial institution), a mortgager and a mortgage broker. Mortgagee is the entity that lends money for the mortgage. Apart from banks and financial institutions, there are other lenders. Mortgager is you, who are borrowing the loan. Using the services of a mortgage broker is optional. Here are some reasons why you should hire him/ her.
It should only take 15 minutes or less to complete a Mortgage pre-qualification application. That’s it. But if you choose to do the whole loan application first, that could take up to an hour to fill out. And if the lender needs all the documents to make a decision that could take a lot more time. Within a few minutes of completing a mortgage pre-qualification application you can know the basic limit of the London Mortgage Broker loan amount and the range of the monthly payments.
Refrain from overstating your income and understating your expenditure. It is illegal to lie about your income on a Mortgage broker application. Remember that lenders will carry out checks to ensure you are able to make your payments each month.
If they are listed on the State’s Web site, it may also list how long the broker has been licensed (you should do business with them only if they have been in business for a minimum of two years), how many loans they have closed in the previous year, how many employees they have, and if they have had any consumer complaints made against them, administrative fines levied or regulatory orders (such as “cease and desist” orders) placed on them, any of their employees or broker. Be sure to search under the individual broker or loan officer’s name, keeping in mind that some states do not license loan officers so that person may not be listed. Checking with the Better Business Bureau may give you some additional information but in my experience most mortgage brokers and lenders are not members of the BBB.
Mortgage Program – The program you qualify for and choose will determine a lot about your loan. How much you need to put down, reserves requirements and necessary credit criteria are based on the mortgage program. Speaking with a mortgage banker is the best way to find out more about specific mortgage programs and qualifications.
Don’t be fooled by brokers advertising that they have the lowest rates. Most mortgage brokers and lenders have about the same rate on comparable programs on any particular day. They may quote them with or without Loan Origination fees and/or Discount Points, which makes it even more confusing. When selecting a mortgage broker the interest rate is an important factor but let’s take it a step further to get a better picture of the total cost to you.
Even if the mortgage broker is working to help you, do not let anyone pressure you into making any decision you are not comfortable with or one that you do not understand. Get the help you need from a broker for just a few cents on the dollar. Expert advice does not come free and you should be ready and willing to see how a broker can help you. You could see a large savings that could balance out against the commission.