9 Benefits of Working with a Mortgage Broker

How do you determine how much house you can afford? Which term is best for you, a 15-year or 30-year? How much of a down payment do you need? Which lender offers the best rates?

Securing a home loan is an involved process that requires extensive knowledge of the mortgage industry. As one of the largest financial investments you will make in your life, it’s wise to seek the guidance of a mortgage professional. You wouldn’t think of building your own home, would you? Of course not. You’d hire a builder to construct the home of your dreams. Similarly, a mortgage broker can help you secure the optimum loan to finance the home of your dreams.

What’s a Mortgage Broker?

Simply put, mortgage brokers are financial intermediaries between mortgage borrowers and mortgage lenders. Mortgage brokers do not use their own funds to originate mortgages but rather seek appropriate lenders for the borrowers’ needs.

Finding a good borrower-lender match is essential, and proficient mortgage brokers will sift through the wealth of lending options to find the most advantageous loan options for their clients. Additionally, they gather all the requisite financial information to present to the lender. This includes:

Income documentation, such as tax returns and pay stubs
Asset documentation, including saving and checking accounts
Employment documentation
Credit reports

Mortgage brokers have a financial inducement to work the lender’s behalf. They don’t get paid unless a loan closes. Generally, mortgage brokers’ commission is between 1-2% of the loan amount, paid by either the borrower, the lender, or both. The amount can never exceed 3% in points and fees under the Dodd-Frank Act.

Benefits Are Many!

As a borrower, you are relying on a mortgage broker’s intimate knowledge of the home loan securing process, as well as capitalizing on his or her access to a wide variety of lenders, to secure the best possible terms for your unique financial situation. Working with a mortgage broker will save you money and time. If you are a first-time home buyer, the extra guidance and support is a boon.

Specifically, a mortgage broker will:

Gather all requisite paperwork from you and forward it to the mortgage lender for underwriting and approval
Keep the underwriting process on track and communicate to you and the lender through entire transaction through closing
Help determine how much home you can afford and your chances of approval
Assist in determining an appropriate loan amount
Calculate your loan-to-value (LTV) ratio, which is an assessment of risk from the lender’s point of view
Match the ideal loan type for your financial needs
Capitalize on a network of lenders to not only secure best rate but also seek approval from another lender if your first application is declined
Access exclusive deals with lenders that otherwise would not be available to you
Have the lender to waive application, appraisal, origination, and other fees, possibly

Trust Is Essential

Purchasing your home is a huge financial – and emotional – investments. You need to work with someone you can trust, someone who will look out for your best interests.

How do you find a reputable mortgage broker? Start with your real estate agent. Ask who he or she would recommend. Solicit friends and family for their recommendations. Check third-party reviews online.

Aksarben Mortgage is a locally owned and operated business. We live in the community we serve and treat all our clients as if they were our own families. Are you looking to secure a mortgage, for either a new home or a refinancing? Contact us today so you can Experience Your Good Life.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.