5/1 Adjustable Rate Mortgage A 5/1 adjustable rate mortgage (ARM) or 5-year ARM is a…
Are you considering buying a home but don’t know where to start?
A mortgage broker can help guide you through the process from start to finish. But what does a mortgage broker do exactly? Let’s take a look at the role of a mortgage broker and how they can help make your home purchase simpler.
A mortgage broker is like an intermediary between you, the borrower, and the lender. As an expert in mortgages, they can help you with every step of the process—from pre-qualifying for a loan to finding the right lender and negotiating on your behalf. Here are some of the key services provided by mortgage brokers:
A mortgage broker will review your financial situation with you to determine how much you can afford to borrow. This is called pre-qualifying for a loan and helps establish how much money lenders are willing to lend to you. The more information your mortgage broker has, such as income sources, assets, and credit score, the better chance they have of getting you approved for your desired loan amount.
• Loan Shopping:
Mortgage brokers have relationships with multiple lenders that allow them to shop around for loans on your behalf. This means they can compare interest rates and terms from multiple banks or private lenders in order to get you the best deal possible. Having this type of leverage gives them more power when negotiating with lenders on your behalf so that you get favorable terms that work in your favor. Banks and lenders typically don’t have this ability and it’s their best financial interest to keep the client “in house” earning them more revenue while the client ultimately loses out.
• Paperwork Assistance:
With any type of loan comes paperwork – lots of it! Applying for loans can be overwhelming if not handled properly, which is why having a trusted professional who knows all the ins-and-outs can be invaluable. From gathering paperwork required by lenders to helping with any questions or issues along the way, having someone knowledgeable on hand makes this daunting task easier and less stressful for everyone involved.
When it comes time for purchasing a home or refinancing an existing one, having a mortgage broker on board can be incredibly helpful – especially when there’s lots of paperwork involved! From pre-qualification through loan shopping and paperwork assistance, they offer important services that will make getting approved much simpler while giving peace of mind knowing that everything is being handled properly by someone who knows what they’re doing.
If you need help navigating through this exciting yet complicated process, consider hiring a qualified mortgage broker such as ourselves today!