A mortgage broker can help you get loans, negotiate terms and find competitive interest rates.
Most likely, you’ve heard of a mortgage broker from a friend who bought a house or contacted he real estate agent. What is a mortgage broker? And what are the differences between a bank loan officer and a mortgage broker?
These are some common questions that mortgage brokers often get asked.
What is a Beverly Hills Mortgage Broker and What Are Their Responsibilities?
The mortgage broker acts as an intermediary between potential lenders and you. The broker’s job it to find the best interest rates for you and compare mortgage providers. The mortgage brokers can help you make your life easier by recommending lenders to you.
The mortgage broker is a licensed financial professional who does a lot of the legwork. They collect documents from you, verify your income, and verify your credit history. The information is used to quickly help you apply for loans or negotiate terms.
Your mortgage broker will work with the lender and the underwriting department to find the best loan for you. The closing agent (usually the title agent) and your realty agent will also help you keep the transaction moving smoothly until closing day.
What does a Beverly Hills mortgage broker get paid?
Lenders pay mortgage brokers most often, while borrowers sometimes pay them. However, the law prohibits both. The law the Dodd-Frank Act also prohibits mortgage brokers charging hidden fees and basing their compensation on a borrower’s interest rate.
You may also opt to pay the mortgage broker directly. This is called “borrower paid compensation.”
Borrowers should shop around for mortgage brokers. They should also inquire about the fees they will have to pay. These fees are usually 1% to 2% of loan amount.
Mortgage brokers will be charged according to the market’s competitiveness and home prices. Federal law restricts the maximum compensation that can be offered.
What is the difference between mortgage brokers and loan officers?
Lenders pay loan officers a fixed salary plus bonuses. Only the type of loans that their employer allows loan officers to write are available.
Beverly Hills Mortgage brokers can either work for a mortgage brokerage company or independently. They deal with many lenders to help their clients find loans. A mortgage broker may be able give borrowers access a wide range of loan types.
Is a mortgage broker right for me?
A mortgage broker can help you save time. It can take hours to get preapproval from different lenders. Then there is the back-and forth communication required in underwriting the loan, and making sure that the transaction goes according to plan. A mortgage broker will save you all the headaches of managing this process.
Pay attention to the fees charged by lenders when you choose a lender, whether it is through a broker or directly. Ask specifically what fees will appear in Page 2 of your loan estimate form under “A: Origination Fees”.
Next, you will need to take the Loan Estimates from each lender and place them side-by-side. Compare your interest rate, closing costs, and fees.
The best way to make the right decision in the biggest purchase of your life is to compare the options head-to-head.
How can I select a mortgage broker?
It’s a good idea to ask your friends and family for referrals. However, make sure that they have actually used the broker and not just dropping the name a former college roommate or distant acquaintance.
Learn as much information as possible about the broker’s communication style, knowledge, and approach to clients.
Your real estate agent is another source of referrals. Ask your agent to give you the names of some brokers they trust and have worked with.
Some companies offer an in-house broker for mortgages as part of their services. However, you are not required to use that individual or company.
The search for the perfect Beverly Hills mortgage broker is similar to finding the best mortgage lender. It’s important to interview at least three people in order to learn more about their services, experience and how they can simplify the process.
To ensure that mortgage brokers are licensed in good standing, check with your state’s professional licensing agency.
You can also read reviews online and consult the Better Business Bureau for information about whether or not the broker is trustworthy.