Is It Good to Go with a Broker or Straight to the Bank for a Loan?admin
Buying a house on your own is not an easy thing to do. If you need to take out a loan from a bank, then for the average citizen the process becomes very time-consuming. Despite the impressive amount of information about mortgages, most people often do not know where to start.
An alternative – appeal to a mortgage broker, whose specialists will provide detailed advice, select a bank, and conduct an initial analysis of the client’s creditworthiness, will help prepare the necessary documents for obtaining a loan and arrange a mortgage on the best terms available.
Mortgage broker’s services:
– Preliminary assessment of your financial and other capabilities and needs, including approximate calculation of closing costs.
Banks have different requirements for borrowers (age, marital status, employment, length of employment, income, etc.) and the property (type of property, location, technical characteristics, etc.).
You need to understand what and how the bank evaluates the property in order to assess your capabilities. You probably do not know what the bank is looking at in the credit history and how to deal with what is written there, but a mortgage broker does – they deal with these issues every day.
– Pre-checking the collected documents, helping to correctly collect and fill out the documents for the bank.
– Explaining not only the lending procedures and potential risks, but also to some extent the nuances of future loan servicing. That means that you will understand what will happen if you do not pay the insurance, or if you will not be able to pay the loan, etc. These answers will provide a broker; you do not need to study the Internet.
– Finding the best loan terms according to your needs and abilities.
– Minimizing the number of rejections, taking into account your situation (having a large number of rejections is not good for credit history).
If you are a small entrepreneur, including self-employed, or you cannot verify income, the task of finding a bank without specialized knowledge becomes more difficult. This sacred knowledge of mortgage brokers allows you to avoid unnecessary rejections, which, by the way, appear in your credit history in a separate section.
– Submitting an application to the banks based on your requests and agreeing with the bank on your lending options.
– Proofreading of the application in the process of communicating with the bank and offering you options for resolving situations that do not suit the bank.
– Evaluation of the package of documents on the subject of collateral for compliance with bank requirements.
After you have picked up the house of your dreams with the help of a realtor, it is a mortgage broker that can say exactly what documents for a particular bank are needed, whether it is enough of what has already been collected.
Advantages of working with a broker:
– Saving your time. Time is money.
– Reducing the probability of rejection by banks, because the broker knows the specifics and requirements of banks better than the average client who reads the information on the bank’s website.
– Saving money as the broker tries to choose the minimum rate based on your profile (different factors influence the rate and the mortgage broker knows how to make the rate more interesting if possible).
– In some cases, the bank gives the broker additional preferences, such as a discount to the borrower’s rate as part of affiliate programs.
– Often the broker also selects the right insurance company to reduce costs for the client.
The most important is that brokers often work with unusual and complicated cases (delinquencies, no income verification, low down payment, etc.).
LBC Mortgage specialists are ready to provide you with the highest level of service to support your mortgage deal and take all the headaches associated with the process of obtaining and approving a loan.
Do not wait until tomorrow, call us today!
For more information on how we can help you with your loan process click here.