(MENAFN- Patrick Rojo)
Buying a house is a major commitment and one that will likely require more money than any other purchase you’ll ever make. It’s also filled with anxiety-producing moments, particularly if you have to get a mortgage, which most people do. Fortunately, certified mortgage brokers can help you navigate the complex world of home loans and save you money in the process. Here’s how.
Identify the Best Mortgage Rates
The primary function of a certified mortgage broker is to act as an intermediary between you and the various mortgage lenders you’ll be researching before you choose one to work with on your loan. They do not represent the lender, so they are solely focused on finding the best mortgage rates for you. They have access to many lenders, all of which have different advantages and disadvantages depending on what you’re looking for in a loan.
Identify the Best Loan Types
Certified mortgage brokers also know all the various types of loans that are available and whether you qualify for them. For example, if you’re a veteran, you’ll have the option of getting a VA loan and a mortgage broker will ensure you complete all the application requirements so that you can take advantage of this benefit of your service. There are many other types of loans you may be eligible for as well, including first-time homeowner’s loans, FHA loans, USDA loans, jumbo loans, and more.
Get Paid by the Lender
One of the best parts of using a certified mortgage broker is that they are usually paid by the lender you end up getting your loan through. They get a commission that ranges between 0.5% to 2.75% of the loan’s principal. You do not have to pay them at all out of your own pocket, which means you get their services at no charge to you. They will research the loans available to you, pull your credit, verify your income, and coordinate all the paperwork that will be required by your lender. You really don’t have to do much except provide the documents your broker requests.
Occasionally, a mortgage broker may charge you, the borrower, and a flat fee instead of getting paid by the lender. This is typically only in the event that you’re using a private lender who doesn’t have a commission agreement with the mortgage broker. In a case like this, the broker’s fees are usually rolled into the loan so that it becomes a part of your balance. You can also decide to pay it separately so you don’t finance it.
Saving You Money
These advantages of using a certified mortgage all add up to saving you money. Without their help, you may not know of a loan you qualify for that has a lower interest rate. You might not be aware that you can pay fewer points by choosing one lender over another. And even if you do know about these ways to save money, you’ll have to do all the work. With a mortgage broker, you can let them do the work.
Conclusion
Since you don’t usually pay a certified mortgage broker, it makes good sense to use one to help you find the best loan possible for your circumstances. In the end, you’ll not only have less work to do yourself, but you’ll also save money when your broker finds you the perfect mortgage.
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