Wednesday, March 3rd, 2010 at
5:09 am
You like to shop. You know you do. It’s nothing to be ashamed of. You like to get out there bedecked in your fashionable hot pants and flip flops, scout the malls and markets, and find the best deals there are. Shopping takes a great deal of time and effort but you’re perfectly happy to do it anyway. If only you put half as much heart in searching for the best mortgage deals there are! You would never end up with an unscrupulous bad credit mortgage broker.
The Sweet and Sour of It
Bad credit mortgage brokers don’t offer mortgages themselves. If they say that they do, they’re probably lying, so go run as fast as you can in the other direction. Bad credit mortgage brokers are basically middlemen who specialize in matchmaking financially-challenged borrowers to money-wise lenders. Bad credit mortgage brokers earn money on commission and are often independent, smooth-talking sales people. They are often licensed to work. Licenses, however, are very easy to obtain. Well and good for the bad credit mortgage brokers who deserve them, but how about the dodgy characters? Not all bad credit mortgage brokers have your best interest at heart. Because they’re paid on a commission basis, they may push for certain deals that are not exactly right for you. That’s why you should be extra careful in choosing a bad credit mortgage broker. The right one can make your life easier. The wrong one could make your life a living hell.
A Lender for the Legwork
Searching for the right mortgage lender can be hard and boring work. Bad credit mortgage brokers can do the work for you and more. They are always privy to the best mortgage deals available and can work out really good deals for you. This is because most bad credit mortgage brokers, especially those who have been in the business for a long time, have built relationships with the lenders. Also, if you have an undesirable credit rating, these brokers can even find lenders that would take you – not out of the goodness of their hearts but because that’s what they specialize in: poor credit.
A’shopping You Go
Shop for the perfect bad credit mortgage broker the way you would a pair of shoes or a new La-Z-Boy. Don’t put all your eggs in one basket. Talk to a number of bad credit mortgage brokers and compare what they have to offer. You can ask for references. Make sure that their promises are put in writing. Always pay close attention to the fine print. Check the accuracy of the information given to you. All fees – hidden or otherwise – should be disclosed prior to committing to anything, and make sure you know what all these fees are for. You can take note of the quotes given to you by bad credit mortgage brokers and call the lender directly to verify the information. It’s not tacky to be a stickler for details. You’re only safeguarding your undertaking and it is perfectly reasonable to do so. Remember, once contracts are signed, there is not turning back.
Your mortgage is not a joke. It deserves as much attention as picking new eyeliner because if you don’t like it, you can’t just give it your teenage niece.
By: Rony Walker
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Friday, February 26th, 2010 at
1:58 am
Getting that perfect mortgage for your new home is always made better when you know that you got a good deal on it. It is always comforting to find out that you are still happy with it even some time later. The way to find that perfect deal, though, could begin with something as simple as making a choice between a direct lender or a mortgage broker. Here are some thoughts to show you why one may be better than the other.
Before any of the differences are looked at, there are some things that are common to both. The first thing, though this might surprise some, is that both are usually paid on a commission basis. While it is often pointed out that mortgage brokers only get their money from the actual sales of mortgages, the same is true of loan officers at a bank. In other words, both have the exact same motive for helping you – they want to make a living, and, they both get a portion of the cost.
This makes it so that both of them are operating on the same principle – more sales equals more money. Other than that, both of them will draw from various mortgage products and both will try to fit the client with the best mortgage product that they have at their disposal.
The Differences
Now, for some of the differences. Here is where you will find a much larger field, and it is one that will bring about a large difference.
?The Products Available
A loan officer is simply the front man for an organization – the bank. He or she is the one that you will deal with when seeking a mortgage. Since they are essentially an employee of the bank or other lending institution, they will can only receive money when they sell that particular company’s mortgage products. To put it plainly, they can only show you the products they are given – from one company. Although there may be a rather large number of products, they are limited as to what the company offers.
A mortgage broker, on the other hand, would have at his or her disposal, an extremely wide selection of products because they regularly deal with many companies. In fact, a mortgage broker can represent a couple of hundred different companies, and therefore would be able to offer many hundreds of different mortgage options – possibly even thousands of options.
?Level Of Commitment
Another difference between a direct lender and a mortgage broker is the matter of his or her personal interaction with you. Now every person is different, but generally, you will find that a direct lender will be much more business-like in his or her demeanor. It will be more of an official visit.
A mortgage broker, on the other hand, will usually be much more friendly, relaxed, and personable with you. They honestly value your business and they will usually let you know it. It would not be unusual if a broker even visited you in your home to go over some details or talk with you some more. They often give you more time to talk person-to-person than a lender will, and they will be very glad to take the necessary time to make sure you understand all the details.
Apart from this, a direct lender may not be as committed to you as a mortgage broker. A loan officer knows that people will come to the bank looking for loans simply because it is a bank. They can get by with doing little and there may not be a lot of incentive on the part of the loan officer to go an extra mile for you. The reputation of the loan officer is not the same thing as the reputation of the bank. With a mortgage broker, however, his or her reputation is the business. They want your business and will often work hard to find a mortgage product that is suited to your needs. They know that a satisfied client will speak for their business in years to come – especially if you know a lot of people.
?Greater Options
In most cases a direct lender, especially one that has been in the business a while, will often stay away from certain loan products. This will tend to make their products better for people with good credit and a strong ability to repay the mortgage. This makes the loan officer extremely limited because most of their products (if any) may not be suitable for those who have less than good credit. The interest rate of a standard lender for this type of situation would make the interest rate too high for most – if a loan could be extended at all.
A mortgage broker, though, regularly deals with people in this situation and quickly knows which lending agency to call on that could provide a mortgage at a better rate for someone with a lower credit score.
?Better Deal
A direct lender is more likely to give you a deal without being able to provide much of a leeway when it comes to interest rates or extra fees. The lending agency itself would set these fees and the interest rate based on certain parameters and the loan officer usually is not able to vary much from it – except upwards.
Once again, though, because the mortgage broker is dealing with many companies, and each lender he deals with knows it, they will provide (in many cases) a greater flexibility for him to vary several factors – thus often resulting in a slightly better deal.
Advantages Of A Direct Lender
While there are certainly a number of advantages that do make the mortgage broker appear to be the better way to go, there are also some things to consider that may point the other way. One thing that could make the bank officer a possible better way to go would be if you already have a mortgage with that bank. It is possible that, since they already have your paperwork in this case, that you may be able to save on a lot of the expense of either remortgaging or getting a second mortgage. It also may be better because many lenders will give you a discount if you have more than one loan with that bank.
Another possible advantage is that a broker may contact a lender in other parts of the country. This could tend to slow down the mortgage process if they are not familiar with the various reasons of why a house in your area may cost more, and be worth more in your area than in another. They would have to take the time to search out the matter satisfactorily, which could delay your mortgage – and possibly set back the closing date. A local lending institution would already know the values of buildings in that region and would not have difficulty with it.
By: Eric Morgan
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Saturday, November 14th, 2009 at
11:14 am
The state of Florida is a huge and confusing marketplace for mortgage loans and it could be quite overwhelming to go out there on your own without professional help. The wise thing to do is to hire a Florida mortgage loan broker to help you.
Expertise
Because it is the mortgage loan broker’s job to find the best mortgage deals and are expert on the ins and outs of the business, they are the best people to help you if you are planning on getting a mortgage. Over eighty percent of mortgage loans in Florida are transacted by mortgage brokers for consumers. Because of their experience, they have the capability to exhaust all options to find the most suitable deal for you.
What to look out for
When looking for a mortgage loan broker, one trait that you should look for is integrity mainly because there is money involved. Your broker should stay true to his or her word and should meet all promises. Read the fine print before signing any agreement with any broker. Make sure that your broker has your best interest in mind and does not push programs or deals that you do not really need. A good broker will assess your financial situation and put you in an appropriate program. It is also best to compare different rates of different brokers to find out if their fees are reasonable.
Fees
Fees vary widely depending on the rate of loan, terms, conditions, etc. Banks and brokers also profit in different ways. It could normally be categorized into three brackets: front end fees, back end rate and the combination of the two. Simply put, some brokers charge at the start of the term, others through a commission basis, and some through both. It is very important to be clear on all terms and fees before hiring a broker. Do not forget to sign an agreement stating all fees, as this will be an additional security for you in the long run.
By: Josh Riverside
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