Sunday, August 7, 2011

What Does a Mortgage Broker Do?

A good mortgage broker basically takes your situation and finds a lender who will give you a mortgage at the best terms and rates. From one point of view you are basically hiring your own agent who will go to different lenders and sell your story. And 90% of the time you are not paying for this service.

Rate Shopping

You may have the perfect scenario with credit, income and down payment, so you are basically hiring us to find you the lowest possible rate with terms that meet your needs for a pre-approval on your home purchase. If you already have a mortgage it is a good idea to be signed up with a broker regarding your renewal date. Often banks will not send out your renewal letter untill a week or two before you need to renew which then puts you in a bad spot with not much time to negotiate. Yes you can negotiate with a bank. If you have your mortgage on a watch list with a broker who deals with many different lenders than basically over a 120 day period you are looking to secure a low rate that can save thousands over the course of five years. $40 or $50 a month in savings could go straight to other investments or a child's school fund.

Possibly you did get approved but have no idea if you recieved a competive rate. Find out.

Bank Turned you Down for a Mortgage

Your situation may be a little different with one of the three pillars (credit, income or down payment) a little damaged or insufficient and your banker or another broker has told you no, you cannot get a mortgage. At this point is when you contact a well established brokerage. If you use a brokerage that is filing 50 to 100 mortgages a month you know they have a very broad spectrum of lenders they are using which opens up opportunity for you. A brokerage has to meet a quota at most of the lenders they deal with, so if thier numbers are low, you know they are using a limited number of lenders.

Take for example if your credit was damaged due to a divorce, illness, a tough emotional time in your life or any number of reasons. We will actually look at your credit history over the last six years and go to lenders with a reason this happened and litterally do our best to talk them into giving you a mortgage. It may take some time or we may have to help you with some credit repair, but if you are pro-active you will enjoy home ownership.

Possibly you are on a salary but it is not high enough to purchase what you want, but you have a large amount of investments. Your net worth will get you a mortgage. Maybe you work part time and have had four different jobs over the last two years. Did you know you can still qualify? Maybe you are on a contract and your bank has turned you down. Did you know you can still qualify? Maybe you work at a temp agency? Yep still qualify. Your ex won't give you a seperation agreement? We don't care, you can still qualify. Self-employed? Many different options here.

Every single lender has their own little rules aside from the mortgage insures. Just because one lender does not like your situation do not give up. Someone will want your business.

Often when applying for a mortgage at a bank someone will take your application and send it away for approval at central underwriting. If it comes back declined, they may not even know why and you have no idea why. Find out why.

Get educated and get a game plan, we will help.

If you have any questions please do not hesitate to contact me.

Ron Miller

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