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Getting a mortgage can be a bit tricky these days, so a lot of homebuyers prefer to hire a mortgage broker. A mortgage broker’s job is to match your application materials with the best lender. Compared to you visiting just one bank, brokers will offer you a lot of choices and in turn a better chance of finding the best rates and terms that suits your needs.
But the question is, out of the hundreds of mortgage brokers out there, how will you choose the best broker out of them all? If you are going to ask a bank’s loan officer, you’d probably hear about their loan products. But if you are to go to a mortgage broker, they are connected with several lenders as a freelance agent. They gather all of your application information and bring it to a variety of lenders, where they would earn usually 1% of the amount, until you find the best lender that best fit your needs.
The best place for you to ask about information on mortgage brokers is probably the state and/or local Boards of Realtors. If you already have a Granada Hills Realtor on your side, he/she is probably working with a mortgage broker or if not, he/she can make some excellent recommendations.
However, there are a few things that need to be clarified: Mortgage brokers are not the ones who will approve your loans; we are just “the middle man” to get you in contact with a lender. The final decision to approve or reject your application for a loan will be the call of the underwriter, who is evaluating your application, of the bank or lending institution. Also, your mortgage broker should have contact with a good appraiser to make accurate valuation of the property at the quickest possible time.
You can also get to negotiate a better rate or terms in your loan if you are with a mortgage broker because they have better access to better rates than you can ever find. This is due to the fact that mortgage brokers are offered with “wholesale” rates because of the numerous loans they submitted.
If you need any help shopping for the best mortgage possible, you can try visiting the Federal Deposit Insurance Corporation (FDIC) for some advice which includes definition of rates, points and fees.
A mortgage broker can help you save your efforts and time and get the best deal possible.
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