Home Loans
February 28, 2008
You want to make the best decision in choosing your personal home loan. What are your home buying goals today? What will they be in years to come? And what’s the best way to achieve them all? Because a mortgage payment is often the biggest monthly expense, a mortgage consultant is a good place to start. Your personal mortgage consultant will help you make the best mortgage decisions, every step of the way.
Imagine shopping for your new home with the confidence of a cash buyer. At no cost, you can receive a Pre-Approval (a firm credit and income loan pre-approval for a specific loan amount before you ever start house hunting). This allows you to narrow your search to only those homes that fit your budget; then the exciting home shopping can begin!
With so many options to choose from, which loan is best? Well, that all depends on you. Are you a first-time buyer, moving to a larger home or an investor? What are your home buying goals? Do you prefer the lowest payments possible; maybe a predictable payment? Your personal mortgage consultant will take the time to understand your personal needs and goals; then explain the best loan options for you.
There’s nothing quite like the joy and accomplishment of owning your own home. Your personal mortgage consultant is here to help you afford the home you really want and be at your side to make it easier, every step of the way.
Choosing a Mortgage Broker
February 28, 2008
Brokers provide consumers with Choice, Convenience & Expertise!
* 2 out of 3 Americans do
* Hundreds of lenders and loan programs available
* Flexible loan guidelines & credit history exceptions
* Personal Mortgage Consultants
* Stringent federal & state regulations & licensing
* On-going education
The consumer receives an expert mentor through the complex mortgage lending process. The broker offers the consumer extensive choices and access to affordable home loans while balancing the consumer’s financial interests as well as their short and long term goals.
Here are some frequently asked questions about mortgage brokers.
Are mortgage brokers lenders or bankers?
Neither. A broker is a real estate financing professional acting as an independent contractor with your best interest in mind. They have no affiliation to any specific bank or lender and generally can offer a more complete range of products and services because they have multiple sources to choose from.
Why does a broker have so many products and services available to choose from?
Brokers work directly with wholesale lenders. It’s like a “back door” entry to the traditional retail lending market. Wholesale lenders offer the best rates, more loan options & flexible loan guidelines. As an independent contractor, the broker allows wholesaler lenders to cut origination costs and Brokers help keep loan rates low due to their minimal overhead and setup costs. The broker works as the liaison between the borrower and the lender to create a cost effective and efficient loan process.
Furthermore, the broker will seek the loan which best suits the borrower’s financial circumstances, needs and goals. From the consumer perspective, with rare exception, the broker is not salaried and does not get paid unless and until the loan closes. Thus, the broker has the ultimate incentive to provide the best possible customer service to the consumer.
Should brokers be regulated?
Brokers are regulated by several federal laws and regulations and dozens of state laws and licensing boards. NAMB supports reasonable and fair state and federal regulation of mortgage brokers and lenders. The industry is regulated by 17 federal laws and numerous state and federal regulations. As of January 1, 2007, Washington State has required that all loan originators be licensed.
Does the mortgage broker really care about the quality of the loan itself?
Yes, absolutely. The safety and soundness of the mortgage lending community is directly linked to the success and integrity of its home loan originations. Furthermore, mortgage brokers represent the single largest residential origination source today (over two thirds of all originations!), emphasizing that they play a significant role in the mortgage loan process. These numbers highlight the fact that consumers who exercise their choice, choose mortgage brokers most likely because brokers are dedicated to their customers and the lenders they represent.
Isn‘t the broker supposed to get the best deal for the consumer?
Since mortgage brokers offer the products of many wholesale lenders they often can offer consumers a wider selection of loan products. This question presumes that anyone can know what “the best deal” is. While many would consider ‘the best deal” to mean “the lowest rate,” a loan program with a very low interest rate may not be the best choice for a consumer with limited cash, if that rate comes with high points and fees. A 15-year loan may save a borrower tens of thousands of dollars in interest payments of a 30-year loan, but the higher monthly payments may be unacceptable to the consumer. So, “the best deal” for any consumer depends on his financial circumstances, needs and goals.
Today over two-thirds the nation’s mortgages are originated by mortgage brokers. This clearly indicates that consumers are choosing the superior options, service, and expertise offered by mortgage brokers. Brokers have forced retail lenders to compete with other loan sources driving down costs nationwide.
Don’t brokers “steer” consumers to the wholesale lender who pays the highest fees to the broker?
While isolated instances of adverse steering can occur, the mortgage brokerage industry has predominantly armed consumers with a free-market economy weapon: open and vigorous competition. Any consumer exercising his or her basic right to shop and compare, will ultimately find the loan options that are in his best interests. The combination of government-mandated disclosures and vigorous competition has presented today’s consumer with unprecedented levels of choice. While price is an important consideration in advocating a specific wholesale lender, brokers also make their professional recommendations based on a number of other factors which include the lenders’ reputation for service, underwriting criteria, ability to fund a loan on time and compliance with consumer’s requirements
How do I choose a Mortgage Broker?
When it comes to choosing a mortgage broker, a personal recommendation from a satisfied customer is, as ever, invaluable. But, there are other considerations as well.
Q: How long have they been in business? (We have over 8 combined years of experience!)
Q: Are they willing to give you recommendations from past clients? (Absolutely & Encouraged!)
Q: Will they be available if you have concerns or questions? (As our business is 100% referral based, we do not have to secure new business by newspaper ads or direct mail. As a result, we are available to respond to your mortgage needs.)
Q: Are they knowledgeable? (We are licensed in the State of Washington & have attended many training classes & seminars. Ongoing education is necessary to stay current with all regulations, laws & loan program guidelines.)
Q: Are they concerned for your best interest? (In order to gain your satisfaction, your ongoing business and referrals to friends, family and co-workers…We will work as hard as possible to gain your trust and confidence. It has been our philosophy and mission to help to achieve your goals.)
It is our hope that you will allow us to assist with your goals and be a part of your mortgage planning needs!