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Financial and Mortgage Services:
Each one of our financial brokers has been personally checked and verified by references, licensing, better business bureaus and local city and state organizations.
What is a Mortgage / Financial Broker
A mortgage / financial broker works as a conduit between the buyer and the lender, the loan officer typically works directly for the lender. Most states require the mortgage broker to be licensed. States regulate lending practice and licensing, but the rules vary. Most have a license for those who wish to be a "Broker Associate", a "Brokerage Business", and a "Direct Lender". A mortgage broker is normally registered with the state, and personally liable (punishable by revocation or prison) for fraud for the life of a loan. A loan officer works under the umbrella license of their current institution. Both positions have legal, moral, and professional responsibilities as well as liabilities to prevent fraud and fully disclose loan terms to both consumer and lender.
Why Use a Mortgage Broker or Financial Adviser
A mortgage is likely the most onerous burden you'll ever carry. It's a loan of monstrous proportions, but for anyone who isn't a rock star or Bill Gates, it's the only way you'll own a house. Clearly, the goal is to find the most competitive interest rate on that whopping sum, but not everyone knows how to go about it.
Not only does that mean most of them are settling for the first quote, but that the majority aren't using a mortgage broker. A mortgage broker is a certified professional who seeks the best mortgage terms for you by accessing a network of lenders that includes major banks, trust companies, credit unions and finance companies. (Brokers may also draw on local lenders that aren't part of a network.) This stable of lenders provides brokers with interest rates on a near-daily basis.
Mortgage expertise can save you money
The most basic advantage of a mortgage broker is that she saves you from
approaching the various lending institutions yourself, a laborious and sometimes
undignified task. You fill out an application stating your assets and earnings,
and based on your financial details, she will scout the market for the best
mortgage.
What makes a certain mortgage company attractive isn't
necessarily the lowest rate. Say you want a mortgage of $250,000. One lender
might get you a competitive rate of 5.5 percent on a five-year term, but
may only be willing to give you $225,000. Many first-time homebuyers will
sacrifice the best rate for a company that will lend them more money.
"You're trying to get a client the best rate and you're trying to get them
the best service, so whichever institution fits those bills, that's what
gets the deal," says Wayne McConnell, president and owner of A+ Financial
Services.
Brokers are paid by lenders, not by you
Colin Dreyer, president of the Canadian Institute of Mortgage Brokers and
Lenders, says that years ago there was a stigma attached to mortgage brokers.
They dealt primarily with the downtrodden and people whom the major banks
deemed high credit risks, or so the logic went.
The other misconception -- which still exists today -- is that brokers exact an up-front fee from clients. Brokers do not charge clients a fee, either before or after they've secured them a mortgage. So how do brokers get paid?
They earn a commission from the lender. Commissions are
fairly standard, ranging from 0.5 percent to 1.25 percent of the mortgage
amount, depending on the length of the term. (A client that locks in for
five years will bring a higher commission than one that opts for a variable
rate.)
In the last decade, mortgage brokers have enjoyed a tremendous surge in
business. Ten years ago, Dreyer says brokers comprised less than 10 percent
of the mortgage market; today, they occupy between 25 and 30 percent.
It never hurts to shop around:
While mortgage brokers have much to recommend them, it's not given
that they can arrange the best mortgage terms. A broker can comb his lending
network and extract what seems like the best available rate, but as a client,
you are not obligated to accept it. Many homebuyers take a broker's quote
and submit it to their own bank in the hopes they might beat it.
The biggest advantage to having a mortgage broker, is the personalized service.
Courtesy of By Andre Mayer • Bankrate.com
