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Web posted
If you just want to refinance an existing home, you have already overcome one element in the process -- finding a new home. If you want to purchase a new home, start shopping because the housing inventory is tight. Finding the right mortgage loan to meet particular needs can be a confusing experience. With so many options to choose from, it can be difficult to sort and analyze which is best. One suggestion is to use a mortgage broker. A mortgage broker guides you through the lending process, provides any help needed and makes every effort to simplify the process. What are mortgage brokers? They are full-time real estate finance professionals who are experts at working through the mortgage lending process. They are your representatives to many lenders with many different mortgage products and are not tied to one lender or one product. Mortgage brokers provide loans that comply with industry standards and requirements from the primary lenders. These standards are set by government agencies that purchase the majority of the mortgage loans produced in the United States. Mortgage brokers are specialists with competitive, up-to-date loan rates. Mortgage rates can and do change several times each day. Mortgage brokers try to manage this volatile environment to provide a borrower the best rates. For example, a rate can be locked for a period of time to insure that the rate being offered is available to you at closing. Mortgage brokers are a source of knowledge on current trends and terms in the industry. Mortgage brokers are affordable consultants who will save you time and money. There are no additional fees paid for the services of a broker other than the usual and customary fees paid for a mortgage loan. Why use a mortgage broker? The mortgage broker's focus is to help achieve the most affordable home ownership through proper financing of a home purchase or refinance. The mortgage broker has a vested interest in satisfying your needs. If you are happy with the work, the broker will ask you to refer friends and neighbors. The broker will take the time to select the best lender from the many sources available in order to provide a loan that meets the individual needs. The mortgage broker works from the premise that there is a mortgage loan for everyone; his or her job is to find it. Just like you, the mortgage broker is interested in keeping the processing time to a minimum to assure timely performance in closing the purchase of a home or lowering existing payments as quickly as possible. Because the mortgage broker has loan options available, they can provide different approaches to paying for the purchase or refinance and help keep out-of-pocket costs to a minimum. What information should you bring to the first meeting with a mortgage broker? You should bring your last two years' tax returns and W-2 forms; this will help to determine what your income is and what size of loan you can afford. You should bring a list of assets and liabilities, which can be presented on an application. Knowing the assets and liabilities will help to determine what other payments you are responsible for and will also help to determine what size loan you can afford. If you are purchasing a new home, bring a copy of the purchase agreement, more commonly called an earnest money agreement. This will help determine the maximum loan amount, as many loan programs have restrictions on the amount that can be borrowed against the purchase price. You should also be able to explain the source of the down payment and earnest money. Lastly, what should you look for in a mortgage broker? Ask what experience they have. Ask your friends and neighbors for suggestions. If the mortgage broker has done a good job for a friend or neighbor, they will probably do a good job for you. You should ask if the mortgage broker is a member of the National Association of mortgage brokers. This organization was founded in 1973 and promotes the industry by providing continuing education opportunities for its members and the real estate community. All members adhere to a strict code of business ethics, which govern their daily activity. Now that I have helped you to understand how easy and uncomplicated the mortgage loan process can be, what are you waiting for? Gather your information, contact a broker and get the process going to take advantage of rates that are lower than they have been in more than 40 years. Bill Simpson is a vice president of Alaska First Bank & Trust in Anchorage. He can be reached at 907-522-2606.
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