What Is a Mortgage Broker and How Can They Help?
Adulting: What’s a Mortgage Broker
So you’re looking for a home? It’s not as fun as you thought it would be, is it? There’s a lot more to it. Not only do you actually have to find a house that fits your needs but you also need to get a mortgage. Unless you’re in real estate or you’re a mortgage broker, you’re probably not very confident about your ability to make the right decision when it comes to a mortgage. But don’t worry! The average adult is so terrible at looking for a mortgage that there’s a whole profession based around it. Meet the Mortgage Broker.
Getting a mortgage is just as important as finding the right house. It certainly isn’t as enjoyable as finding your first home and it’s probably more stressful, however, it’s unavoidable. Like all major, unavoidable, and stressful decisions in life, there’s an insane amount of stuff to consider when getting a mortgage.
Working with a Mortgage Broker, Explained
At first, your instincts will probably tell you to go straight to your bank. You trust your bank to hold your money, a mortgage should be no different. You believe that until you sit down and read the fine print. Maybe you’re not ready to negotiate a mortgage one-on-one with your bank. That’s okay because there’s a group of professionals that are.
The Mortgage Broker
As I’ve said a few times, mortgages are super important. They’re also unique to each person. That’s why it’s essential to have someone who understands your needs and situation when looking for the right mortgage. You’re going to want personalized service. You want someone who understands you or your family. That’s where a mortgage broker comes into to play.
Essentially, a Mortgage Broker is a middleman between you (the borrower) and the bank or loaner.
St. Louis-based Liberty Lending provided a great step-by-step overview of what to expect when working with your mortgage broker. They consult with their customers to offer multiple loan types. The USDA Missouri loan can help to reduce costs in rural and suburban areas where people are looking to buy a home. An FHA loan is less strict than a conventional loan, making them more popular for first time home buyers. Last, VA or military loans are issued to veterans and active military to provide competitive interest rates and 100% financing.
Tips from Mortgage Brokers and Consultants at Liberty Lending
Step 1: Knowing How Much You Can Afford
It all starts with a simple conversation with your broker. You’ll need to know how much you can borrow. Your mortgage broker will sit down with you and find out just how much you can or should borrow. Your broker will ask a series of personalized questions to find out your financial situation. Once they determine just how much you should borrow, they’ll work with you to parse through the various mortgage options. Banks love to give you a hefty packet or dense brochure. Qualified mortgage brokers like the ones at Liberty Lending work with you to get individual options.
Step 2: Getting Pre-Qualified
Getting pre-qualified may very well be the most important step in the mortgage process. Brokers will work with you to ensure pre-qualification. Being pre-qualified is essential as it gives you buying clout. When a seller knows you’re pre-qualified, they’re more likely to go with your offer. Mortgage brokers ensure pre-qualification.
Step 3: Reading the Fine Print
Though you’ve technically received your loan, the work of your broker isn’t over just yet. Mortgage brokers like the ones at Liberty Lending will comb through every detail of your contract or application once approved. They make sure you’re getting the best deal.
Finally, Moving In
The final thing you’re mortgage broker will do is making sure you’re successfully moved into your new home. Mortgage brokers will work with title companies and escrow to ensure everything is in your best interest.
Good luck out there!
Liberty Lending is a fantastic mortgage broker and offers a variety of resources on how to work with mortgage brokers.