Mortgage Brokers Can Save You A Fortune

Mortgage Brokers Can Save You A Fortune



Mortgage Brokers Can Save you​ a​ Fortune
A mortgage broker is​ one of​ several sources that homebuyers can use to​ obtain a​ mortgage.
Mortgage brokers work with multiple lenders,​ also known as​ wholesalers,​ to​ offer loan products to​ homebuyers.
When you​ work with a​ mortgage broker,​ he does the​ initial steps of​ the​ loan process: completing the​ application,​ obtaining your credit report,​ conducting the​ appraisal,​ verifying your employment,​ etc.
After the​ broker completes these steps the​ lender conducts the​ underwriting process in​ which your risk as​ a​ borrower is​ determined.
When the​ loan closes,​ you​ will no longer work with the​ mortgage broker .​
Instead,​ you​ work with the​ lender.
These wholesale lenders quote brokers a​ wholesale price for the​ loan .​
The mortgage broker then decides the​ price to​ offer to​ you.
The price you​ are quoted by the​ mortgage broker often includes some type of​ markup,​ usually in​ the​ form of​ points .​
Each point is​ one percent of​ the​ total loan amount.
So if​ the​ mortgage broker charges 1 point on​ a​ $100,​000 loan,​ he received $1,​000 .​
Keep in​ mind that the​ number of​ points the​ broker charges is​ in​ addition to​ interest charged by the​ loan provider.
There really is​ no systematic way for mortgage brokers to​ set their markups.
For the​ most part,​ you​ can expect the​ broker to​ set the​ markup as​ high as​ they feel they can get away with.
This is​ why it​ is​ vital for borrowers to​ negotiate the​ price of​ their loan as​ much as​ possible .​
Go into the​ process expecting to​ negotiate because often the​ markup a​ mortgage broker includes isn’t the​ absolute lowest he or​ she will accept.
The benefits to​ using a​ mortgage brokers are numerous.
You will likely get a​ much better deal when you​ work with a​ broker than you​ would going straight to​ the​ lender,​ even though mortgage brokers are known for marking up mortgages.
Since mortgages brokers have the​ luxury of​ working with several different lenders,​ they are in​ a​ position to​ give you​ the​ lowest mortgage offered.
You might also consider working with an​ upfront mortgage broker,​ a​ variation on​ the​ traditional mortgage broker.
An upfront mortgage broker conducts business in​ a​ slightly different,​ and perhaps more ethical manner.
At your request,​ this kind of​ mortgage broker discloses,​ in​ writing,​ the​ wholesale value of​ the​ loan as​ well as​ his or​ her markup included in​ the​ loan.
There are no secrets when you​ work with an​ upfront mortgage brokers – you​ know exactly what you​ are paying and how much goes to​ each party in​ the​ process.
Finding an​ upfront mortgage broker in​ your area can be done by visiting the​ Upfront Mortgage Brokers Association’s website found at​ www.upfrontmortgagebrokers.org.
Through this website you​ can locate and contact upfront mortgage brokers in​ your area.
When you​ use a​ mortgage broker to​ shop for your loan,​ it​ is​ a​ good idea to​ shop around with several other mortgage brokers to​ get a​ feel for the​ rates that are being offered.
This is​ the​ surest way to​ receive the​ best deal on​ a​ mortgage.




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