Even veteran mortgage brokers agree that people who want to get mortgages and loans through a broker now have to have a good broker. Most brokers who were in the business 20 or 40 years ago acknowledge that the mortgage and loan situation is very different now than it was 20 or 40 years ago.
It used to be that traditional mortgages were fixed rate packages with the same price and the same payment terms. Now, things are different. Leonard Wineburgh, broker and president of Chicago-based Dwinn Shaffer & Co, tells us why. In a recent interview in a National Real Estate Investor article, he said there used to be no prepayment penalties because those didn’t exist yet. In addition to that, he claims there were only a handful of lenders to work with and finding a loan wasn’t as complicated as it is today.
He also pointed out that loans today have different regulations and that mortgage brokers must handle these documents in addition to appraisals, Environmental Protection Agency guidelines, engineering reports and other documents that did not exist a few years ago. The lending business is very complex now, he said.
Complex and always changing, yes. Lending companies are constantly coming up with packages and programs that offer multiple options and choices for mortgages. That’s a good reason why borrowers should seek out a good mortgage broker.
Another reason a borrower needs a good mortgage broker is to save him from headaches and other expenses. With work and family taking up our time, it can be difficult to keep up with interest rates and rates that change as often as the weather, except for keeping track of the lender who can offer us the lowest and best deal.
These two facts are the reason why mortgage brokers came into existence. Mortgage brokers can find the lowest rates for their clients because they have access to many loan contacts. In addition to this, they can negotiate terms that can be troublesome for us personally and find temporary financing when something goes wrong with a conventional loan. Mortgage brokers can also make sure that the loan or mortgage is completed within the time frame specified in the contract.
However, before looking for a mortgage broker, it is important to remember that a broker is not always a good broker. Some deals succeed or fail depending on the broker you choose. Here are some guidelines from MortgageFit.Com that can help you decide on the right broker for you.
– Mortgage brokers must be affiliated with many lenders and should be licensed.
– A mortgage broker should work for a reputable institution. You can check the name of the company at the Best Business Bureau or the Chamber of Commerce.
– The mortgage broker should provide you with the name and contact number of someone who can be contacted for a credibility check.
– The mortgage broker should ask you about your requirements for the loan. He must ask you questions and not give you a lot of facts. He should prioritize your needs and should come up with ways to accommodate the various deals in this industry.
– The mortgage broker should have a list of the various deals he can offer. This is a good quality because if not, you might get the best deal.
– The mortgage broker should be knowledgeable and competent in all things involving mortgages or loans.
– The mortgage broker should be paid on commission and this will make him or her work harder for you.
– It is recommended that the mortgage broker should have a local branch near you so that it can be found in case any problems arise with your loan.
If you find a mortgage broker who has all these qualities, then you don’t have to worry. You will feel safe when dealing with your mortgage.