by Calvin Hollie Part 2 Conclusion
Financing Consultants or Mortgage brokers are licensed and regulated financial professionals acting as the bridge between borrowers and lenders. Brokers can originate loans but do not close and fund mortgages themselves, and they can help you find the best lender for your needs.
Unlike a mortgage banker, which offers only one bank’s products and uses that bank’s funds to originate loans, a mortgage broker provides access to loans from a variety of lenders. Those lending companies make the mortgages to borrowers. Mortgage brokers work in tandem with other professionals throughout the entire financing process helping to accomplish your goals.
The role of these financing professionals is to work closely with the client to advise and even educate them as to what they will need in the financing process. The major benefit of course is that they work for you the borrower and not the lender. So, their interest is in successfully navigating you through the lending process to ultimately bring your loan to closing and funding.
What’s in it for the broker? A mortgage broker receives a fee that is a smaIl percentage of your loan amount, usually 1 % to 2%. Which is typically paid at the closing. These fees can be rolled into the loan amount and paid to the broker by the closing agent as part of closing cost. Obviously, there are federal laws in place to protect you the borrower against predatory lending practices, limiting the amount the broker can charge.
But of course, two of the major advantages for using a mortgage broker is saving you both time and money. Additionally, a mortgage broker can:
1.Provide you with access to different lenders, loan types and rates.
2.Offer loans and rates that a traditional bank cannot.
3.Provide insights into loan affordability and your chances of loan approval.
4.Work closely with the lender’s underwriting team which could help you close your loan faster.
Finding a good financing professional may be challenging. I recommend shopping around to find not only a good personality fit but also a broker who has the right knowledge to support your financing needs. Interviewing brokers can also help you find the right blend of personality, professionalism, responsive communication and trust. Consider not only rates and on-time closings but also how well the broker communicates and connects with you.
If you’re struggling to choose between a bank or a mortgage broker, think about whether you’re willing to put in the time to find the loan you need. And if not, are you willing to pay for someone else to do the legwork?
Consider a mortgage broker if:
You want someone else to do the work of finding a good lender.
You have a lower credit score or other loan application challenges, and a good broker will know which lenders are willing to work with you.
Calvin Hollie – is President & Founder of Integrity Business Solutions Group, Inc., with over 24 years of experience in the mortgage and financial services industry. He can be reached at (877)777-4274 or direct at (716)256-4632