Sunday, October 19, 2008

Three Common Misconceptions Of Mortgage Brokers

Some first time home buyers opt to obtain a loan directly through their local bank branch rather than employing a mortgage broker. The reason why this may occur is because there a few misconceptions associated with the mortgage broker profession. In reality, mortgage brokers and their respective brokerages have come along way from the days of selling loans simply for profit purposes. Listed below are three opposing thoughts on common mortgage broker misconceptions.

They just want to sell you a loan.
Fact is that once a mortgage broker is employed by you, he or she is simultaneously employed by your mortgage lender as well. Ultimately, however, a loan will not go through unless the future mortgagor, you, agree to the terms of the loan that your mortgage broker had set up for you with your new lender. This means that first and foremost you are their customer, not the lender’s. Additionally, mortgage broker fees are extremely competitive and they are aware of that fact. So much so that most brokers are willing to negotiate their fees with you which will, in turn, take your concern that they are just trying to make a buck out of the rest of the loan process equation.

They are old fashioned and only do business one way.
Some people picture a mortgage broker as a ‘business only’ profession. Meaning that customer service is not a high priority. On the contrary, mortgage brokers are constantly training on new and improved ways to satisfy their customers needs. Whether it is learning how to initiate a short sale on your behalf or taking seminars on what new programs lenders are able to offer you as a consumer, they are continuously finding new ways to keep their finger on the pulse of what prospective clients want and need.

They will quote you an interest rate just to get their foot in the door.
While it is true that the mortgage interest rate amount fluctuates daily it does not mean that the rate they may quote you today will be obsolete by tomorrow. Mortgage brokers are able to negotiate directly with lenders in order to lock your interest rate for a certain period of time in order to get your loan approved and closed in a timely manner. Please note that some lenders will require monies up-front in order to lock in a certain rate, however, the funds put in will be credited back to the customer at the time of closing.

Mortgage Brokers work for you and take pride in what they do. They want to know what new programs there are in order to stay up to date with our market needs as well as be able to provide you with superior customer service. Choosing a mortgage broker over a loan officer at your local bank branch has its advantages. When you decide a mortgage broker is right for you, you will get a highly skilled, well trained, and customer service oriented professional.


Wednesday, October 15, 2008

Low Mortgage Interest Rates...affordable Homes...economic Incline?

The current mortgage interest rates are very low right now and more people that have been renting homes are finding it more affordable to purchase their homes at this time. While home buyers are investing their money, renters are merely throwing their money away. Although very different, buying a home is somewhat comparable to a bank account due to the equity that grows over time.

Though the economy is a bit shaky, more people are taking advantage of the current mortgage interest rates to finally own their own homes. Deducting a loan’s interest for the previous year is an advantage that first time buyers have.

All buyers get to deduct what the points cost them, that is, if they paint points to get their home. For example, if you paid $10,000 for points, that is how much you can deduct from your taxes.

Due to the current mortgage interest rates it is in your favor to itemize all your house expenditures that you are entitled to on your tax forms. You can clearly see why owning your home is much more to your advantage than renting.

Everyone that wants to buy a home should take advantage of the current mortgage interest rates. There are many more advantages to buying a home than to renting a home.

Another charge you may be able to deduct from your income taxes is the private mortgage insurance (PMI) premiums you have to pay if your down payment is less than 20 percent of total cost of your home.

Although buying a home can be frustrating, most of the work can possibly be done for your with the right help. A real estate agent can help you narrow down your choices for your home, and a mortgage broker can help you get the best possible current mortgage interest rates.

All interest rates are not the same; however, mortgage brokers have a little more leeway to negotiate the lowest possible rate. Whether you find your home on your own or employ an agent or broker, your objective is to get the best home for the lowest percentage of the current mortgage interest rates.

Buying a home is not only an investment; it is an investment that puts money into your pocket in the long run.