A few things we’re great at
assists individuals and businesses in need of loans to buy or refinance a house or other real estate property.
Mortgage loan consultants deal with lending institutions, acting on the behalf of potential borrowers to get the best loan for their financial situation. Rather than work directly for a bank like loan officers, these consultants work
as independent contractors. They often develop relationships with real estate agents who might then recommend these mortgage loan consultants to their clients when they are ready to apply for a loan. Their annual earnings are often
based on commission from the number and type of loans they broker each year.
Home Mortgage Consultant (HMC) is responsible for producing high quality loans that meet Wells Fargo Home Mortgage guidelines by building relationships with realtors, builders, financial professionals, bank stores, past customers and other nontraditional sources, while providing excellent customer service.
When shopping for a mortgage, many investors enlist the services of a mortgage broker to find them the best terms and rates.
We want to satisfy our customers’ financial needs and help them succeed financially.
Mortgage loan consultants perform the same duties as a bank loan officer. A mortgage broker applies for loans with different lenders on your behalf, shops for competitive mortgage rates and negotiates terms. These include collecting entity information in a loan application, using it to assess a borrower’s credit and financial history and explaining the loan process to the applicants. , an income statement, credit report, and a list of assets currently in your possession. All these documents will help your mortgage broker determine your eligibility to afford a mortgage, as well as what type of rate you would qualify for.
After looking over all these documents in detail, your mortgage broker will be better able to determine what type of loan and package would work best for you. This could involve coming up with an appropriate loan amount and loan-to-value ratio (a comparison between the value of your loan versus the value of your property).
That head-to-head price comparison among different options is the best way to make the right choice in what is likely to be one of the largest purchases in your life.
One of the jobs of a mortgage broker is to shop around with a number of lenders to help find one that is willing to provide the lowest rate possible. This is in stark contrast to a retail bank, which will only extend a rate that they have to offer.
Your mortgage broker is essentially the middleman between you and the lender who is willing to extend a loan to help you finance a investment purchase. These professionals will do all the work on your behalf to search for the ideal mortgage at an interest rate and terms that suit your financial position. Shopping around from one lender to the next is extremely time consuming; mortgage brokers can take all this added work off your plate to save you time, and eventually save you money in lower interest rates.
Pros of working with a mortgage broker
– They do all the legwork for you, working on your behalf with the lender
– They compare wholesale mortgage rates from a large number of banks and lenders all at once
– Wholesale interest rates can be lower than retail (bank branch) interest rates
– You get more loan options because they work with numerous banks and lenders
– Brokers can finance tricky deals because of their knowledge and various lending partners
– Are typically easier to get in contact with, less bureaucratic
– The other benefits of hiring a broker are mostly connected with saving – saving you time, frustration and money.
– Might be able to close your loan faster
Because the typical broker works with a network of five to 10 mortgage lenders, they can quickly analyze a variety of mortgage products to find the most favorable rates, terms and closing costs.
In addition, brokers often know lenders that offer specialized mortgage programs – e.g., low or no downpayment programs, home renovation programs, etc. – as well as financial institutions that lend to home buyers with less-than-great credit scores.
Obviously, you could do all this legwork yourself, but that might involve dozens of phone calls and face-to-face meetings, not to mention mounds of paperwork – something the mortgage broker will do on your behalf.
A broker will fill out applications for you, negotiate with loan officers and, because they have existing relationships with a variety of lenders, they can also speed up the whole process.
At the very start, a broker will examine your income statements, credit reports, employment history, lists of assets, etc. to determine whether you can afford a mortgage and, if so, what types of rates and terms you’ll qualify for.
Although the broker may approach a number of different lenders, only one mortgage application will have to be completed – the one required by the lender you decide to use. If you approached five different lenders directly, you’d have to fill out five different applications yourself.
How Brokers Are Paid
Ideally, a broker will save you enough money on interest rates and other transaction fees to more than offset what he or she charges you.
In most cases, you (the investor) will pay the broker’s fee (typically 1% to 3% of the loan amount), either upfront or after incorporating it into the mortgage loan.
Brokers are usually not paid unless the deal closes, so they have a big incentive to find a mortgage with rates and terms meet your needs and desires.
In addition, this means brokers are less likely to take “no” for an answer. For example, if a lender rejects your application, the broker will work hard to help you overcome the obstacles that are standing between you and an approved loan.
How do I choose a mortgage broker
The best way is to ask friends and relatives for referrals, but make sure they have actually used the broker and aren’t just dropping the name of a former college roommate or a distant acquaintance. Learn all you can about the broker’s services, communication style, level of knowledge and approach to clients.
Another referral source: your real estate agent. Ask your agent for the names of a few brokers that he or she has worked with and trusts. Some real estate companies offer an in-house mortgage broker as part of their suite of services, but you’re not obligated to go with that company or individual.
Finding the right mortgage broker is just like choosing the best mortgage lender: It’s wise to interview at least three people to find out what services they offer, how much experience they have and how they can help simplify the process.
Also, read online reviews and check with the Better Business Bureau to assess whether the broker you’re considering has a sound reputation.
Working with a mortgage broker can save you time and fees.
A Broker May Save You Legwork
Mortgage brokers have regular contact with a wide variety of lenders, some of whom you may not even know about. A broker also can steer you away from certain lenders with onerous payment terms buried in their mortgage contracts.
A Broker May Have Better Access
Some lenders work exclusively with mortgage brokers and rely on them to be the gatekeepers to bring them suitable clients. You may not be able to call some lenders directly to get a retail mortgage. Brokers may also be able to get special rates from lenders due to the volume of business generated that might be lower than you can get on your own.
If you’re in the market for a new investment property but don’t have time to wade through scores of applications or shop around for the best mortgage rates and terms, a mortgage broker could be the best friend you’ve never met.
By using a mortgage broker, you are (in theory) partnering with a well-connected pro who will serve as your comparison shopper and negotiator-in-chief — someone whose job is getting you the best deal and steering you through the loan process from start to finish.
A mortgage broker acts as a middleman between you and potential lenders. The broker’s job is to work on your behalf with several banks to find mortgage lenders with competitive interest rates that best fit your needs. Mortgage brokers have a well-developed stable of lenders they work with, which can make your life easier.
Mortgage brokers are licensed financial professionals. They gather documents, pull your credit history, verify income and apply for loans on your behalf.”
Once you settle on a loan and a lender that works best for you, your mortgage broker will collaborate with the bank’s underwriting department, the closing agent (usually the title company) and your real estate agent to keep the transaction running smoothly through closing day.
You can also save time by using a mortgage broker; it can take hours to apply for different loans, then there’s the back-and-forth communication involved in underwriting the loan and ensuring the transaction stays on track. A mortgage broker can save you the hassle of managing that process.
Unless there are major issues with your credit or financial history, brokers are much better able to get you a lower rate on your mortgage because they are shopping around with various lenders, as opposed to banks that are only able to offer you their own rates and packages.
Condition in a mortgage that gives the lender the right to require immediate repayment of the loan balance if regular mortgage payments are not made or for breach of other conditions of the mortgage.
Interest earned but not yet paid.
Mortgage Brokers provide one-stop shopping, not to mention some level of trust and ongoing engagement.
A broker should answer any questions you may have about the process, and can explain the “legalese” featured in the mortgage and the other closing documents.
However, borrowers who have trouble qualifying for a mortgage or need to finance tricky deals will often get turned away at the big banks that don’t necessarily specialize in home mortgages.
So for these people, using a mortgage broker is often the next best option.
Brokers typically have access to far more loan products and types of loans than a large-scale bank, whether it’s FHA loans, VA loans, jumbo loans, a USDA loan, or simply a borrower with bad credit.
Meanwhile, an institution like Bank of America might only offer conventional mortgages, such as those backed by Fannie Mae and Freddie Mac.
If you go with a broker, you might wind up with a more personalized loan experience, where they can carve out solutions to your problems, whether it’s a low down payment, limited credit history, or the desire to limit closing costs and/or avoid mortgage insurance.