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Written by Tamara Schmitt
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Wednesday, 04 January 2006 |
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Whether purchasing your new home or refinancing for lower rate/term or cash out, trying to do the leg work yourself can not only be a daunting task, it can actually cost you more money in the long run.
While mortgage brokers are often thought of as a "Middle Man" in the loan process, a good loan officer who works for your best interest is invaluable in narrowing the search for the best suited loan package to meet your goals. Most brokers have access to many lenders and the larger companies can actually procure better rates than you could by going directly to the same lender! How? Larger broker houses do such large volume with their most used lenders that lenders allow lower rate programs than are offered to the general public.
Be caucious of this, though. Brokers who use only a narrow list of lenders may be limited in what they can offer you. "Shopping" brokers costs nothing except a credit pull, which can be detrimental to your score by shaving points off if done too often in a short time.
When searching for a good mortgage broker, try to get a feel for the services they offer. Ask questions about thier loan process, turn around time and special services they may offer, like in home closings, overall financial analysis, etc.
Once you find a broker you feel comfortable with, be open about what your specefic priorities are so they can best suit the program to your needs. For instance: if you are refinancing a house that you plan to move out of within 3 years, why pay higher rates of a fixed loan when a 3 year ajustable rate mortgage would suit your needs at a lower rate? On the other hand, if you plan to stay in your home forever, fixed rates at a time when rates are low, like we experienced this last year, are ideal IF your cerdit, debt to income and liabilities afford a low rate. There are many variables to hoaning in on the right loan for you, depending on your specific goals and qualifications. This is the main job of the mortgage broker is to find the best suited program for you with a long term goal in mind. |
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Last Updated ( Tuesday, 22 August 2006 )
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