Even veteran mortgage brokers agree that it is important
nowadays for people who want to get mortgages and loans through brokers
to get good ones. Most brokers who have been in the business twenty to
forty years ago admit that the mortgage and loan scene at present times
is far different from the one twenty to forty years ago.
Before, traditional mortgages come in fixed rate packages with the
same price and the same length of paying period. Now, it's different.
Leonard Wineburgh, a broker and president of Chicago-based Dwinn
Shaffer & Co tells us why. Interviewed in a recent article in
the National Real Estate Investor, he said that there were no prepayment
penalties before because these weren't existing yet. Aside from
this, he claims that there were only a handful of lenders to work
with and searching for a loan was not as complex as it is now.
He also noted that loans today have different kinds of provisions
that a mortgage broker must work with aside from documents such
as appraisals, guidelines from Environment Protection Agency,
engineering reports and other paper works that weren't available
years ago. He said that loan business is very sophisticated nowadays.
Sophisticated and always changing, yes. Loan companies keep on churning
out packages and programs that offer several options and choices in mortgages.
Which is a good reason why borrowers should seek a good mortgage broker.
Another reason why a borrower needs a good mortgage broker is to spare
him from headaches and other expenses. With work and families taking
up our time, it's difficult to keep up with interests and rates that
change as frequently as the weather aside from keeping track of lenders
that could offer us the lowest and best deals.
These two facts are the reasons why a mortgage broker comes in. A mortgage
broker could find the lowest rates easily for their clients with their
access to numerous lending contacts. Aside from this, they can negotiate
provisions that could be bothersome for us to do personally and find
stop-gap financing should a traditional loan comes up with some problems.
A mortgage broker can also ensure that the closing for the loan or mortgage
comes on schedule following the contract.
But, before getting
a mortgage broker, it is important to remember that a broker is
not necessarily a good broker. Some deals can either make or break
depending on the broker you choose. Here are some guidelines provided
by MortgageFit.Com that can help you decide the broker who is
right for you:
- The mortgage broker must be affiliated to many lending institutions
and should be licensed.
- The mortgage broker should be working at a reputable institution.
The name of the company could be checked at the Best Business
Bureau or the Chamber of Commerce.
- The mortgage broker should provide you with the names and contact
numbers of people who can be contacted for credibility check.
- The mortgage broker should ask you what you want on your loan.
He must ask you questions rather than on giving you lots of facts.
He should prioritize what you need and should come up with ways
to fit this with various deals available in the industry.
- The mortgage broker should have with him various lists of deals that
he can offer. This is a good quality because if not, you might get the
- The mortgage broker should be knowledgeable and competent with everything
that concerns a mortgage or a loan.
- The mortgage broker should be paid on commission which will make him
or her work harder for you.
- It is recommended that the mortgage broker should have a local branch
near you for it to be accessible should there be any problems with your
If you find a mortgage broker who has all these qualities, then you
need not worry. You will be in safe hands while dealing with your mortgage.