It’s important when you want to get mortgages and loans through brokers to get good ones. Most brokers who have been in the business twenty years or so admit the mortgage and loan scene today is far different from the one twenty to forty years ago.
It used to be traditional mortgages came in fixed rate packages with the same price and the same length of paying period. Now, it’s different. Leonard Wineburgh, a broker and president of Chicago-based Dwinn Shaffer & Co. said in a recent article in the National Real Estate Investor, that there were no prepayment penalties before because these weren’t existing yet. He also said there were only a handful of lenders to work with in earlier years and searching for a loan was not as complex as it is now.
He also noted that loans today have different kinds of provisions that a mortgage broker must work with aside from documents such as appraisals, guidelines from Environment Protection Agency, engineering reports and other paper work that weren’t available years ago. He said that the loan business is very sophisticated nowadays.
Sophisticated and always changing, yes. Loan companies keep churning out packages and programs that offer several options and choices in mortgages. Which is a good reason why borrowers should seek a good mortgage broker.
Another reason why a borrower needs a good mortgage broker is to spare him from headaches and other expenses. Mortgage brokers help consumers save on their time, money, and effort. With work and families taking up much of our time, it’s difficult to keep up with interest rates that change as frequently as the weather and keeping track of lenders that could offer the lowest and best deals. Because mortgage brokers provide assessment on their clients’ financial status, they can easily target products which more or less cover and fit with the clients’ needs. This makes the job easier and less time-consuming. Mortgage brokers maintain contacts with several lending companies. This allows mortgage brokers to get the cheapest loans for their clients.
These two facts are the reasons why a mortgage broker comes in. A mortgage broker could find the lowest rates easily for their clients with their access to numerous lending contacts. Aside from this, they can negotiate provisions that could be bothersome for us to do personally and find stop-gap financing should a traditional loan comes up with some problems. A mortgage broker can also ensure that the closing for the loan or mortgage happens on schedule following the contract.
But, before getting a mortgage broker, it is important to remember that a broker is not necessarily a good broker. Some deals can either make or break depending on the broker you choose.
Finding a broker that’s right for you
Here are some guidelines that can help you decide the broker who is right for you:
- The mortgage broker must be affiliated to many lending institutions and should be licensed.
- The mortgage broker should be working at a reputable institution. You should check the company at the Best Business Bureau or Chamber of Commerce.
- The mortgage broker should be able to provide you with the names and contact numbers of people who can be contacted for credibility check.
- The mortgage broker should ask you what you want on your loan. He must ask you questions rather than on giving you lots of facts. He should prioritize what you need and should come up with ways to fit this with various deals available in the industry.
- The mortgage broker should have with him various lists of deals that he can offer. This is a good quality because if not, you might get the best deal.
- The mortgage broker should be knowledgeable and competent with everything that concerns a mortgage or a loan.
- The mortgage broker should be paid on commission which will encourage him or her to work harder for you.
- It is recommended that the mortgage broker should have a local branch near in case there be any problems with your loan.
National Association of Mortgage Brokers
Established in 1973, the National Association of Mortgage Brokers is the primary trade association that represents the community. The association is affiliated with 46 states and promotes professional certification for mortgage brokers. Mortgage brokers who are members of the National Association of Mortgage Brokers are required to follow the association’s code of ethics and adhere only to the best lending practices in his profession.
If you find a mortgage broker who has all the above qualities, then you can feel comfortable knowing you will be in safe hands while dealing with your mortgage.
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