Category Archives: Mortgages

Top Question to Ask So Not to Get a Bad Mortgage Broker

Mortgage brokers can be an invaluable part of your home buying team. These professionals can help you clearly define your short and long-term goals, prepare your financial profile for exhaustive loan application reviews and locate the right lenders, loan terms and features. In order to choose the best broker for these efforts, however, there are a few key questions that you should make sure to ask. To find that perfect Mortgage Broker for Greenville SC visit: http://GreenvilleMortgagePlace.com

1. How are you paid?

There are two ways in which mortgage brokers are paid for their services. Typically, these professionals represent the interests of a handful of lenders who they promote to borrowers. After having successfully brokered a deal between a borrower and lender, the broker will then receive a commission from the Yield Spread Premium on the loan or the YSP. This is known as back-end compensation. With front-end compensation, mortgage brokers are paid outright by borrowers through direct fees or points. In either case, the broker will ideally be representing the best interests of the borrower at all times, whether recommending lenders or funding products. Paying for these services outright, however, eliminates the fear that a broker may be driven to recommend specific funding offers, based on the commissions that these might produce.

2. Why aren’t these rates available in other places?

Brokers often lure people in with promises of below average interest rates. While access to these rights might be due to strong relationships with some of the top-performing lending institutions, it can also be indicative of hidden fees. Take some time to find out whether or not these fees exist and what they are. This could help you to sidestep substantial loan origination fees.

3. How long have you been in business?

There is currently a very vast array of mortgage products available. You want to hire a broker who has a comprehensive understanding of each one of these. A seasoned professional will not only be able to match you up with funding products that are best-suited to your financial abilities, needs and goals, but this person will also have the ability to offer tips on how to qualify for these products. Experienced brokers recognize the value of creating lasting relationships with their clients and of remaining viable and helpful parts of their purchasing teams. Whether you intend to pay for these services out of pocket or want to work with brokers who are willing to accept back-end payments, it is vital to ensure that you are getting the level of service and support that you deserve.

4. What resources do you have available?

This is an especially important question for first-time buyers. The goal of every good broker is to educate consumers on their options, make knowledgeable recommendations and help people make informed decisions on their own. They do not pressure their clients into pursuing funding offers, even if they believe these options to be best. With a wealth of informational resources available, a broker’s clients can get a full understanding of their forthcoming ownership costs, their available loan options and more. Access to these resources is a sign that brokers are committed to guiding people through this process rather than attempting to force their hands.

For more about Finding a Broker:

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Don’t Get a Bad Mortgage Broker

What To Watch For When Finding a Mortgage Broker – originally from: Kathryn Mellon, http://kathrynm.com

There are several mortgage brokers in your area who are more than willing to help you out right now with your general mortgage requirements. However, you need to be certain that you are only sticking with the right one that fits in with your demands. There are many things that have to be considered if you are going to find a mortgage broker that is right for you.

Ask For Conditions

Sometimes a mortgage broker might offer you a great deal on your property. You need to ask about all the conditions that come with the deal including how much money is involved and whether or not any collateral is required. Details on any possible rate changes should be discussed too. If a mortgage broker is very open about all the terms that come with whatever you are trying to attain then you should not have too much trouble with finding someone who is easily trustworthy and honest.

Check All Offices

Make sure your mortgage broker of interest has an office. You need to deal with only brokers who have offices as they are people who are easier to trust in and will have more of the resources that you need in order to get somewhere in your work in general. If the broker is not in an office in any form then that person might not be all that honest or trustworthy.

What About Recommendations?

Mortgage brokers often use their own special series of recommendations to guide people to certain properties. Always ask about the basis for each recommendation that a broker has to offer. If the broker is unable to get out as sensible reason why one recommendation is so great then it might be best to move on to another option.

The recommendations need to be as independent as possible and not limited to specific types of entities. You have to be cautious when finding ways to give yourself a fair chance at finding properties that are appropriate for your demands and are not suggested just because your broker said that they sounded like good places for you to get in touch with.

Get An Offer In Writing

Every offer that a broker gives to you must be in writing. If the offers that you get aren’t in writing then they are probably going to be illegal options that may cost you more money than what you might be willing to part with at some point.

Be careful when finding mortgage brokers. Always be certain that you look for brokers that are easy to trust in and will not be hard for you to utilize.

Step by Step Guide to Getting a Mortgage

LoanApprovalGetting the right mortgage to go house hunting is not rocket science, so we are going to give you some useful tips for you to get the most out of this process. We will start by taking about how to clean up your credit, the pre-qualification process, the pre-approval process, and the different types of lenders you can find in this market.

Clean Up Credit

People with a high credit scores will be able to borrow more money from lenders at lower rates of interest. So get a full credit report right away. You need to check the score out right away to fix any error or improve your score over time. If you have a low score, pay off your credit card balance, close cards you are no longer using, and avoid incurring in any new debt. In addition, spend the next 6 months making all your loan payments on time.

Pre-Approval and Pre-Qualification

You have to meet with your lender to provide them information on your liabilities, income and assets. The lender will assess this information to let you know the amount of money you are allowed to borrow. Although the process is informal, you need to get the pre-approval of your loan before applying for a loan in a serious fashion. Next your lender will verify your employment and financial data as well as your credit rating to make a final decision. In addition, the pre-approval of your loan will give you the upper hand while negotiating the price of a house with a seller.

Getting a Lender

If you read the paper, turn on your TV, or drive down any roadway, you will realize there are plenty of businesses willing to give you the kind of mortgage you want. Mortgage brokers, banks and online vendors work very hard to give you the opportunity to get some money from them. Banks offer very competitive fees, strong brand names and face-to-face treatment and service. Mortgage brokers are great for people with low credit rating. Online mortgage sites will allow you to compare different lenders in real time, and you should go house hunting once you are pre-approved. So spend the money only if you have assessed different offers from sellers.

Remerber that you have to clean up your credit if you have a low score in order to get the right mortgage with an low interest rate. In addition, take advantage of all the different lenders out there and assess every offer. You may also want to download this guide from Freddie Mac on getting a mortgage: http://www.freddiemac.com/singlefamily/docs/Step_by_Step_Mortgage_Guide_English.pdf