How Do You Spot a Reputable Online Mortgage Broker Online?

There is a growing presence of mortgage brokers online with their contact information details and services that they offer to potential borrowers or buyers. This trend has become evident because of the rising dependence of borrowers of mortgage brokers for their loan applications. With available information in the Internet, borrowers make use of this media to research the market of their investment, find out about the key players, and of course finding the right online mortgage broker who can give them best deal in mortgage opportunities.

In turn, brokers can showcase their mortgage broker leads online and their successful testimonials from grateful clientele. Some brokers put mortgage tools in their websites to entice prospect clients. Updated mortgage tables can show the viewer a summary of some of the best mortgage offers in the market. Checking it from time to time can help you to determine the trend and possible mortgage decision you need. It is quite helpful for those who are overpaying mortgage dues and are planning to switch their mortgage scheme. Another popular tool often used by brokers in their page is the mortgage calculator. Calculate how much you can borrow and the monthly repayments on a mortgage rate, calculating interest only or repayment. Using these tools can help you understand your mortgage choice and you can contact the mortgage broker of your choice.

Choosing the right broker over the Internet is a task in itself because of the many mortgage brokers available in the Internet. But do not be taunted by this idea because your mortgage future depends on the right broker for your mortgage profile. They can provide you with the right mortgage vendors that can help you achieve the mortgage rates that you can afford. So how do you spot a reputable online mortgage broker online?

As much as possible, they must be working or have worked for a financial institution or bank. You can found out their background in the “About Us” link in their website. They can also tell you about their expertise and are not afraid of telling how you can get rebates or great deals from any of the brokers online. There are organizations listing licensed brokers so make sure that your candidate online has the necessary credentials and that they check out okay.

Second, brokers in the virtual world can answer you in your inquiries in simple English. They can thoroughly explain and supply you with facts that are necessary for you mortgage decisions. Some mortgage broker sites require you to fill out a digital form to further assess your mortgage credibility. After sending information and specifying your mortgage needs, a good online broker should be able to assess your financial structure and offer you plausible mortgage vendors that suit you.

Lastly, a good broker in the Internet does not shy from constant communication with you. Their interest to provide for the help that you need should be backed up with their ability to communicate necessary information for your mortgage inquiries. They should show initiative by regularly contacting you.

Getting an online mortgage broker can be easier if you also listen to the recommendations of your family and friends. They can drop names for you to check out online. Be cautious and you will find a good one for your mortgage deals.

Choose Wisely – A Comparison of Mortgage Brokers And Banks

Mortgage Brokers Do The Work So You Don’t Have To

My career in the mortgage industry has provided me with many opportunities to work with both mortgage brokers and banks. I believe mortgage brokers are great tools for consumers in search of the best financing options available. A mortgage broker differs from a bank representative in some important ways. The broker can shop and find the best deal for a homebuyer or refinancing deal. The bank only sells its own products. The mortgage broker takes one application and one credit report and utilizes all of the resources to find the best rate and mortgage program available. In my role as the mortgage broker I am an expert working hard specifically for the consumer.

Mortgage Brokers Can Show You All The Possibilities

As a mortgage broker I may work with up to one hundred lenders all over the country. The consumer never knows about many of these companies because mortgage brokers have exclusive access to them. When a bank turns down a mortgage application for any reason, the bank is finished with that potential customer. A mortgage broker is not through — he or she moves forward to find the next best lender. If a customer does the mortgage research alone mortgage companies want to pull a credit report before giving any details about products and programs you qualify for. All of these credit inquiries may lower your credit score and when it is time to qualify for the mortgage this is critical. My goal with every customer I work with is to find the best rate. This money all comes from essentially the same places: investors on Wall Street. Customers with good credit will be quoted a similar rate from a bank.

Tap Into Broker Knowledge And Thrive Under Special Circumstances

Consumers dealing with more credit challenges may find they have more choices with a mortgage broker. A lack of a down payment, a short time in business or the inability to prove all of your income may be a problem and a skilled mortgage broker will be able to find a solution. I can find specialty programs many lenders don’t have or don’t know about. Mortgage brokers shop around the country and they have the knowledge and expertise to get someone with unique circumstances approved.

How Does the Mortgage Broker Get Paid?

In the mortgage industry brokers are an integral part of the equation to get the best value for your money. I am the middleman between the customer and the lender. Mortgage lenders compensate mortgage brokers for completing a large portion of the work. When a mortgage broker markets and originates the loan lenders only have to deal with basic negotiations that involve an educated party (the broker), the approval process, and execution of the loan. The cost for banks and mortgage companies do not differ.

Compare a Mortgage Broker to a Buyer’s Agent

A mortgage broker is like a buyer’s agent for your mortgage.

A buyer’s agent represents the home shopper’s best interest. The agent is an educated real estate professional dedicated to representing only the purchaser. With this representation the homebuyer can save money and have better deals negotiated.

As a mortgage broker, I negotiate the term of a loan with only my customer’s individual needs and desires in mind. As a consumer it can be difficult to find advisors and representatives completely committed to your best interests. A mortgage broker is the key to uncovering all the possibilities and securing the best mortgage rates you can find. Be sure to choose wisely and you can reach your highest home investment potential.

Who Is Better – Mortgage Banker Or Mortgage Broker?

In a time that seems so long ago, when you applied for a mortgage, it was assumed you would go to your local bank — the institution where you kept your savings and checking accounts – to also obtain your home loan. I can’t exactly put my finger on the time period where this changed but we are now in a more modern era and the process is usually quite different.

Yes, banks and credit unions still have a large market share for mortgage origination, a larger chunk of market share is now occupied by companies whose business is specifically to originate mortgages.

As one can imagine by looking at the number of competitors in the market place, there is a lot of money to be made by the companies that provide or find mortgages for home buyers, not only on the interest, but also on closing costs and other fees. When looking at companies specializing in mortgage lending, there are two basic categories of mortgage originator…
Mortgage Banker and Mortgage Broker.

Lets look at the mortgage banker first. When you do business with a mortgage banker you are dealing directly with the company making your loan. Often the term direct lender is used to describe a mortgage banker. The mortgage banker may not be a mortgage servicer, meaning they are not ultimately going to be the company where you make your mortgage payments, but it is their underwriting decision to determine if your loan meets the guidelines of approvability. Although a mortgage banker is typically limited to the products they will offer to borrowers, many mortgage bankers maintain relationships with “wholesale” lenders where they can broker loans should a borrower’s request or borrowing profile not meet their own mortgage loan offerings.

In today’s mortgage market, mortgage banker underwriters generally make their decisions based on the guidelines set by agencies (FHA, VA, Fannie Mae, Freddie Mac). The trade association affiliated with mortgage bankers is the Mortgage Bankers Association of America.

Next we will look at the Mortgage Broker
A mortgage broker serves the same needs as a mortgage banker but in a different manner. The mortgage broker is not a lender, does not make the ultimate decision to approve or decline a mortgage application but has the luxury of drawing from a large pool of lenders for borrowers to find the right match and obtain mortgage loan approval.

To say that using a mortgage broker creates a middle man effect (broker to lender to borrower), and to then assume this effect creates more cost to the borrower is not entirely fair. Mortgage Brokers do not deal in the retail world of loans. Most direct lenders, lenders that you can access on your own, have a wholesale department with the sole purpose of servicing the loans sent in by mortgage brokers. These departments are commonly referred to as wholesale lenders and they offer pricing that is not available to the public and allow brokers to be competitive on a retail level with mortgage bankers. I think it is important to point out that on occasion, a wholesale lender will price unusually low to beef up their pipeline of loan originations and a broker can be in position to take advantage of this for you whereas a mortgage banker wouldn’t.

In scanning the mortgage market, both nationally and regionally a broker knows a lender’s specialty. The broker can identify what lender might fit a borrower’s special needs based upon an analysis of the borrower’s credit profile. The broker does everything the lender would do — checks your credit and work record, arranges for title search and hires the property appraiser — but, once all of this information is compiled, the broker selects a mortgage lender that will most likely accept the application based on its financial data and unique information. In some offices, the mortgage brokers also are lenders.
The major trade association for mortgage brokers is the National Association of Mortgage Brokers The association is a nonprofit organization with a code of ethics and business practices that applies to any broker who wants to be a member. There is a section of the association’s web site where you can search for a member broker in your area.

Tip
Whether you choose a mortgage banker or mortgage broker, you can’t be wrong in that decision on its own. As in anything, the quality is in the people and it is then good idea, no essential, to ask friends and relatives, especially those who have recently gone through the process, to recommend a mortgage professional.