Often people who are not very familiar with the mortgage process, or may not have enough time to devote to research various mortgages available, choose to apply for their mortgage through a broker.
A mortgage broker Seattle will act as your middleman between your potential lenders and you. The broker is supposed to compare different mortgage lenders and find their interest rates so that you can see what fit your needs. Usually, most mortgage brokers work with their fixed lenders that can also make your life much easier.
All mortgage brokers have a license and they are regulated financial professionals and capable of doing plenty of legwork. They will gather relevant documents from you, find your credit history, also verify your employment and income, and use all the information for helping you to apply for loans and also negotiate all terms in a much shorter time.
Once you have decided on your lender and the loan amount that works best for you, then your mortgage broker may collaborate with your bank’s underwriting department, the real estate agent, and your closing agent. This will help maintain smooth transaction through the
closing day.
PROS AND CONS OF MORTGAGE BROKER
The following are a few pros and cons of firing a mortgage broker that you must know.
Pros:
- Convenience
Hiring a mortgage broker will be very useful for you if do not have enough working knowledge of the mortgage and finance markets, or you cannot devote sufficient time in searching for deals, speaking to lenders, and doing the necessary paperwork.
- Access
Because of their various contacts and experience, a mortgage broker usually can have access to many different lenders and hence they will have a much better chance to find a deal that can fit your entire criteria.
- Expertise
Usually, the mortgage industry will appear too confusing for those who are never involved in such a process. Also, things may change very quickly because interest rates can fluctuate and hence mortgage deals may come and go.
If you have an expert on your side, then he can explain everything clearly so that you can understand and take your best decision.
Cons:
- Cost
No mortgage broker will offer you a free service and hence it may costs you more when you want to save money as much you can. Fees can also vary significantly between one broker to other and hence you need to do shopping around.
- Limitations
It is a myth that all brokers have got full access to everything about the mortgage market, which means over-relying on their knowledge may often limit your options.
Few brokers have few lenders with whom they are comfortable as they have developed a better business relationship only with them. Therefore, you must always ask your mortgage broker, how many lenders are they working with and also whether they have any specific preference for certain lenders.
- Quality
If you check their qualifications and experience then you will find that they vary dramatically from one broker to another. You may often get tied up with an incompetent broker that will cost you money but also your process will be slower.
Therefore, before hiring any mortgage broker you must try to get any reference or recommendation from your trusted friend or colleague.
Before you hire any mortgage broker you must ponder on the following few questions about any broker.
How a mortgage broker gets paid?
Often mortgage brokers get money from lenders and borrowers, but, legally it is prohibited, and are not supposed to charge any hidden fees. Therefore, before you hire them you must be very clear about how much percentage of loan they will charge.
What makes any mortgage brokers something different from any loan officers?
A loan officer is an employee of any lender who will get a set salary and other bonuses. Whereas a mortgage broker may either a self-employed professional or working in any brokerage company. They may get you connected to many borrowers to offer you an option to choose your lender.
Whether a mortgage broker option will be right for me?
It will be entirely your own choice whether to go for a mortgage broker or not. However, if you want to choose a broker then try to get any recommendation from a trusted person so that you know that you will get the best support.
