What Are The Benefits Of Using A Local Mortgage Broker?

Local mortgage brokers are a popular option for anyone interested in buying or refinancing a home. They specialize in helping their clients through each step of the mortgage process, and can even offer helpful advice to those in need of higher credit scores.

What is a mortgage broker?

A mortgage broker evaluates available loan options from various financial institutions and private lenders to find the ideal mortgage for you and your situation. The broker also qualifies you for the mortgage, whether you are refinancing your home or buying a new one. A mortgage broker ensures you are eligible by gathering and analyzing your employment documentation, credit reports, income, and asset data to assess your ability to secure the finances. Additionally, brokers communicate to the lenders during the transaction period to determine your appropriate loan type and loan amount. They then submit the documentation to the lender for approval.

Benefits of mortgage brokers over banks

Both the bank and mortgage brokers can help you secure a loan. However, when you consult a local mortgage broker, they will offer you a much higher level of personalized service. They can also offer possible options to you if you have damaged credit. By implementing more fast, flexible, and personalized service than banks, they have increasingly acquired a more significant percentage of the home loan market. Other several advantages of choosing a mortgage broker over a bank include more training, lending expertise, and better advice & guidance on the loan. They are also willing to negotiate on the loan terms.

D. Shane Whitteker is the owner and chief broker at Williamsport mortgage broker Principle Home Mortgage. 

“In general I would say mortgage brokers offer better rates, better service and more mortgage options,” Whitteker says. “Also, in my case because of how long I have been doing this, I bring far more knowledge than the competition.”

So when should you contact a mortgage broker? Anytime you’re thinking about home financing.

“A mortgage broker should be contacted when you start to think about purchasing a home,” Whitteker says. “Being proactive in this process is important. I think it is a good idea to check with a mortgage broker first in any circumstance where a mortgage is needed.”

Purpose of mortgage brokers

Apart from compiling the required paperwork for you and securing reasonable loan terms, mortgage brokers anticipate problems that could hinder the application. They assist in providing solutions to these problems. Additionally, they evaluate each lender to know what issues might create difficulties in securing the loan.

“A mortgage broker handles the mortgage from loan application to loan funding,” Whitteker explains. “Basically we handle the retail aspect of the mortgage process. The lender will be responsible for the underwriting process, the funding of the mortgage, and the servicing of the mortgage.”

How to choose a mortgage broker

When looking for a mortgage broker, you could start by consulting the people around you like friends, colleagues, and family who have had experience with one before. You could also research brokers online. It would be best if you researched extensively on review websites such as Google to determine the past experiences of prior clients. A broker that asks many questions about you is likely to offer an excellent service with the appropriate rates. This is because the broker will negotiate with the lenders on your behalf. 

Is a mortgage broker right for my situation?

According to Whitteker, it’s almost always a good idea to consult with a mortgage broker. 

“It is rare that a local bank is a better option,” Whitteker says. “The wholesale market of mortgages has expanded in the last decade to the point where mortgage brokers have access to more options than a local bank does. This also has opened up more cost saving options with a mortgage broker. 

What is the difference between a mortgage broker and a mortgage lender?

“The main difference is that a mortgage lender is responsible for funding the mortgage,” Whitteker explains. “A mortgage broker does not lend money or fund the transaction.  There are also difference in the licensing process.”

Can a mortgage broker help with bad credit?

Whitteker says mortgage brokers who can help their clients improve their credit are a case by case basis. 

“This depends on the broker,” Whitteker says. “At Principle Home Mortgage, we do have the ability to work with clients to improve their credit, but this comes down to whether or not the broker will take the time to do this.”
 

What to ask a mortgage broker

There are several questions that you should ask a mortgage broker before securing a deal. Inquire on the best loan for you after giving them the necessary paperwork. It would help if you inquired about the interest rate and the annual percentage rate. Additionally, it would be best if you also asked on the down payment required, available origination fees and discount points, prepayment penalties, and loan rate lock. 

According to Whitteker, it all comes down to finances.

“There should be a conversation about how much home you can afford,” Whitteker says. “There should be a conversation about how much this home will cost you on a monthly basis, and there should be a discussion about your monthly budget and what you feel comfortable paying on a monthly basis." 

If you’d like to learn more, contact Williamsport mortgage broker Principle Home Mortgage today. You can call their team at (814) 308-0959.