Use A Mortgage Broker

What is a mortgage broker?

Mortgage Broker Definition

A mortgage broker is a real estate financing professional who, as a business, brings together a lender and a borrower. This is done after thoroughly reviewing the needs and capabilities of that borrower, the characteristics of the property in question, and the various loan programs available from a wide range of lenders. This is done in accordance with and under the restrictions of all state and federal laws.

The benefit of a mortgage broker for the public

The loan program that is best suited to a particular borrower is not always apparent when that borrower submits a loan application. Often a loan program, which at first glance seems like a good match, may not be practical as the loan is processed and additional information about the borrower and/or property is received. Lenders' loan programs and the rates attached to each program often change on a daily basis. Using a mortgage broker gives the consumer the opportunity to go to a different lender if the original program, or its rates and/or fees have changed, or if the borrower's circumstances on the property warrant a change. A mortgage broker represents his client by accessing a multitude of lenders.

In Summary

The mortgage broker industry has enjoyed a remarkable evolution and growth in our state. As mortgage brokers and as an association, we seek to do one job and do it well. We provide outstanding service to the clients we serve, to our communities, and to the lending/banking industry.

Who are mortgage brokers?

Finding a mortgage loan for your home can be a confusing experience. With so many options to choose from, it can be difficult to find your way. That's why a mortgage broker is your primary source for loans. A mortgage broker will guide you through the loan process, give you any help you need, and try to make the process simple. You'll get the service and selection you want from a mortgage broker.

Full-time residential real estate professionals.

Experts in working through the home loan process to save you time.

Your representative to many lenders.

Loan providers that meet industry standards and requirements.

Specialists with competitive and updated loan rates.

Knowledge resources on current industry trends and terms.

Why choose a mortgage broker?

More than 60% of Americans do. Brokers provide consumers with:

Offer

Convenience

Experience

The consumer receives an expert mentor through the complex home loan process. The Mortgage Broker offers the consumer extensive choice and access to affordable mortgage loans while balancing the consumer's interests and financial goals.

Our focus is to help you achieve the “American Dream” through the proper financing of your home purchase or refinancing.

We have a vested interest in meeting your needs.

We will select the best lender from our many sources to provide you with a loan that meets your individual needs.

We have extensive knowledge of the many loan programs available and will take the time to match your needs to the best loan.

There is a loan for everyone and we know how to find it.

Because interest rates change daily, we may obtain a fixed rate to ensure that the rate offered is available to you at closing. For more information visit Mortgage UK.

We are motivated to keep processing time to a minimum so that you are satisfied with our timely performance.

Our position in the mortgage industry gives us a competitive advantage that allows us to provide you with a loan that will benefit you the most at the lowest costs.

As your personal mortgage broker, we are happy to work with you to find the best loan for your home.

Your mortgage broker:

The key to your new home or debt consolidation

Why use a mortgage broker?

Because using a mortgage broker can make a difference in the interest you pay, the points you are assessed, how difficult it is for you to qualify for a loan, how long it takes to get your loan approved, and even if you can get a loan.

If you had to do it yourself, where would you start? How many mortgage sources are you familiar with? How many of the hundreds of loan variations do you fully understand? Your mortgage broker can guide you through this potentially disastrous maze and lead you to a lender and loan that best suits your specific requirements.

(Too often, it's the other way around...the lender scrutinizes you to see if you fit their profile.)

In fact, there are sources of money (wholesale lenders, unconventional investors, etc.) that can only provide financing through mortgage brokers. Market conditions often dictate how "selected" most lenders will be, what percentage of total income the lender will allow being a mortgage, how large down payment is required, how perfect your credit score must be, and other similar factors. Unconventional sources known only to a mortgage broker can offer hope to prospective homeowners who are having difficulty qualifying with conventional lenders.

Finding a mortgage loan for your home can be a confusing experience. With so many options to choose from, it can be difficult to find your way. That's why a mortgage broker is your primary source for loans. A mortgage broker will guide you through the loan process, give you any help you need, and try to make the process simple. You'll get the service and selection you want from a mortgage broker at Grandview Lending.

Frequently asked questions about mortgage brokers

Have more Americans been able to buy homes thanks to mortgage brokers?

Yes! Mortgage brokers have pioneered the subprime credit market, using innovative loan packages to enable low-to-moderate income borrowers with less than perfect credit histories to begin enjoying the benefits of homeownership. Many low-income borrowers with less than perfect credit history would not have been able to purchase the home of their dreams without the help and dedication of a mortgage broker.

Are mortgage brokers lenders or bankers?

Neither. A mortgage broker is a real estate financing professional who acts as an independent contractor. The range of products and services offered through mortgage brokers and by mortgage brokers is rapidly evolving. There are circumstances where mortgage brokers can act as bankers and finance your loans. However, most perform origination services up to the point of financing.

Does the mortgage broker really care about the quality of the loan itself?

Yes absolutely. The safety and strength of the mortgage lending community is directly tied to the success and integrity of your mortgage loan originations. In addition, mortgage brokers represent the largest source of residential origination today, emphasizing that they play an important role in the mortgage lending process. These numbers highlight the fact that consumers, who exercise their choice and choose Mortgage Brokers, are more likely to do so because Mortgage Brokers are dedicated to their customers: consumers, wholesale lenders, and, ultimately, the American taxpayer.

Should mortgage brokers be regulated?

Mortgage brokers are regulated by various federal laws and regulations and by dozens of state laws and licensing boards. The National Association of Mortgage Brokers (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.

What role does the mortgage broker play against the wholesale lender?

The wholesale lender insures and finances the mortgage loan, may service loan payments, and ensure the loans' compliance with underwriting guidelines. The Mortgage Broker, instead, originates the loan. In order for a wholesale lender to evaluate a consumer's mortgage loan application, a detailed application process, financial and creditworthiness investigation, and exhaustive disclosure requirements must be completed. The Mortgage Broker simplifies this process for the borrower and wholesale lender by conducting this research, advising consumers on their loan package options, and enabling them to select the right loan for their home purchase needs.

The home loan process can be arduous, expensive, and seemingly impossible for the consumer. The mortgage broker acts as a liaison between the borrower and the lender to create a profitable and efficient loan process.

Do mortgage brokers work for the wholesale lender or for the consumer?

As an independent contractor, the Mortgage Broker enables wholesale lenders to reduce origination costs by providing services such as preparing the borrower's loan package, loan application, the financing process, and counseling the borrower. Mortgage brokers help keep loan rates low due to their minimal setup and overhead costs. In addition, the Mortgage Broker will search for the loan that best suits the borrower's circumstances, needs, and financial goals. From a consumer perspective, with rare exceptions, the mortgage broker does not get paid unless and until the loan is closed. Therefore, the Mortgage Broker has the ultimate incentive to provide the best possible customer service to the consumer.

Isn't the mortgage broker supposed to get the best deal for the consumer?

Because mortgage brokers carry the products of many wholesale lenders, they are often able to offer consumers a broader selection of loan products. This question assumes that anyone can know what the "best offer" is. While many would consider "best deal" to mean "lowest rate," a loan program with a very low-interest rate may not be the best option for a cash-strapped consumer if that rate comes with points and fees. tall. A 15-year loan can save a borrower ten of thousands of dollars in interest payments over a 30-year loan, but the higher monthly payments may be acceptable to the consumer. Therefore, "the best offer"

Today, more than two-thirds of the nation's mortgages are originated by mortgage brokers. This clearly indicates that consumers are choosing the best options, services, and experiences that mortgage brokers offer. Mortgage brokers have forced retail lenders to compete with other cost-cutting lending sources across the country.

Don't mortgage brokers "steer" consumers to the wholesale lender that pays the highest broker fees?

While isolated cases of adverse direction may occur, the mortgage brokerage industry has predominantly armed consumers with a weapon of free market economics: open and vigorous competition. Any consumer who exercises their basic right to shop and compare will eventually find the loan options that are best for them. The combination of government-mandated disclosures and vigorous competition has presented today's consumers with unprecedented levels of choice. While price is an important consideration in defending a specific wholesale lender,

Why do mortgage brokers charge fees to both the consumer and the lender? Isn't this a conflict of interest or duplication of charges prohibited by the Real Estate Settlement Procedures Act?

The Real Estate Settlement Procedures Act allows fees to be charged between providers of settlement services, so long as those fees are reasonable for the services, goods, or facilities actually provided. Mortgage brokers provide the same services to consumers as retail loan offices that generally charge the consumer an origination fee. These services include: taking the application, obtaining the credit report and appraisal, advising the consumer on the loan process, and collecting the necessary documents. Mortgage brokers also provide separate and distinct services and facilities from wholesale lenders. These include: marketing the lender's products and assembling and delivering the entire loan package.

In addition, lenders may pay mortgage brokers a premium - "yield margin premium" or "service release premium" - which may include compensation for services and facilities, but also represents payment for market value. intrinsic to the closed loan. These Are All Legal Remedies It is important to remember that regardless of who compensates the Mortgage Broker (the lender or the consumer), in almost all cases the Mortgage Broker receives nothing until the loan is closed.