FAQ’s

Mortgage brokers provide various services, including pre-approval, loan comparison, and application assistance. They help individuals understand the different types of mortgage loans available, compare and shop the best interest rates in the market, and assist clients from application to closing.

Mortgage brokers usually earn a commission from the lender for securing a loan on behalf of a borrower. The commission is typically a percentage of the loan amount. This commission is usually paid by the lender as a lender credit to the borrower.

Mortgage brokers have access to a wide range of loan products that banks don’t have and can help individuals find the best loan option or product for there needs and circumstances. Banks, on the other hand, typically only offer basic loan products that only serve a certain segment of the market.

Using a mortgage broker is not required, but many people find it beneficial as they can provide many more options than a typical bank or retail mortgage lender. They provide not only many more rate options and loan options but also valuable guidance and assistance throughout the mortgage loan process.

Not necessarily. While mortgage brokers may charge a fee for their services, they usually can match and usually beat any bank or retail lenders rates and fees. They can save borrowers money by finding them the best loan program, finding them the best rates , and saving time for borrowers by finding a loan with the least amount of conditions from a lender.

You can ask for recommendations from friends and family, check with professional organizations such as the National Association of Mortgage Brokers, or go to www.Findamortgagebroker.com. Great resource for mortgage brokers in your area. You can also Google mortgage brokers in your area and look for one with the highest and best ratings.

To help a mortgage broker assess your loan eligibility and find the best loan option, you must provide personal and financial information such as your employment status, income, assets, and credit history. You usually need to provide 2 years tax returns and W2’s, last 30 days paystubs and last 2 month bank statements of all assets in the bank including retirement accounts. This documentation can very based on qualifications and loan product. Example: Lender might only need W2’s and paystubs not tax returns if a borrower doesn’t own other property and is a salaried or hourly employee. Example 2: Bank statement loans borrower might only need to provide any where from 3 months of bank statements to 24months.

On average, it can take any where from 2-4 weeks usually. Mortgage brokers are there to speed the process up for you versus banks and retail lenders.

Pre-approval is an evaluation of your credit and financial situation to determine the maximum loan amount you are eligible for. It gives you a good idea of the loan amount and rate you may be able to get, allowing you to make informed decisions when shopping for a home. It gives a buyer a price range to look for homes that they qualify for. The preapproval is given when a Mortgage Broker or Lender has reviewed all income and asset documents for the borrower and lets realtors and sellers know that they have a pretty definitive chance of closing on  a contract if one has been agreed upon.

Pre-approval involves a more in-depth evaluation of your financial situation and is usually valid for a set period of time. Pre-qualification is a preliminary assessment of your financial situation, and is not as comprehensive or binding as pre-approval.

Yes, a mortgage broker can help you find loan options even if you have a low credit score. However, having a low credit score may limit your loan options and result in higher interest rates. A mortgage broker can help you understand the impact of your credit score on your loan options and work with you to improve your credit if possible.

Yes, mortgage brokers are required to be licensed in most states in the US. They must meet education and training requirements, pass a background check, and complete continuing education to maintain their license.

Yes, you can still work with a mortgage broker even if you have a lender in mind. A mortgage broker can help you compare the loan terms and interest rates from different lenders to ensure you are getting the best deal possible.

No, a mortgage broker cannot guarantee loan approval. Lenders have their own underwriting standards and criteria for approving loans, and each application is evaluated on a case-by-case basis.

Yes, mortgage brokers can assist with refinancing your existing mortgage. They can help you evaluate your current loan terms and compare them with other options to determine if refinancing is the best choice for you.

The amount a mortgage broker can help you save on your mortgage depends on various factors, including the loan amount, interest rate, loan term, and fees. However, many people find that working with a mortgage broker helps them save money on their mortgage over the long term.

If you change your mind about the mortgage broker or lender during the process, you have the right to switch to a different broker or lender. However, there may be fees or penalties associated with doing so, so it’s important to carefully review the terms of any agreements you have signed.

Having a mortgage broker check your credit will likely result in a small temporary drop in your credit score. However, this effect is typically minor and should not significantly impact your overall creditworthiness.

Yes, you can negotiate the commission rate with a mortgage broker. However, it’s important to remember that the commission is typically paid by the lender and not by the borrower, so negotiating the commission rate may not have a direct impact on your costs.