There is just one thing you need to know if you searched for “Mortgage Rate”: USE A MORTGAGE BROKER!!! A typical “storefront” lender, in contrast to a mortgage broker, offers just the loan products offered by that particular institution. Those loan officers at Countrywide, Suntrust, and Washington Mutual, for example, will only be allowed to market the products of that particular institution to customers. Mortgage brokers, on the other hand, aren’t tied to any one lender. Mortgage brokers do the legwork for you by looking into every possible source of financing available, including those “storefront” banks as well as any others.
Here’s a breakdown of how it works.
To begin with, you’ll need to locate a reputable mortgage broker. You may begin your search on the internet. Whether you’ve never heard of the broker you’re contemplating, check them out with the Better Business Bureau to see if they’re real. There have been several instances when purchasers have discovered a terrific bargain with an online lender, only to be turned down because the lending institution could not finance their loan…HEARTBREAKING!!! Personal experience has taught me that if you’ve never heard of a lender before, it’s best to do some research on them via the Better Business Bureau to make sure you’re dealing with a reputable company.
Choosing a broker will need the disclosure of certain sensitive financial information. Your social security number, salary, and employment history will all be required to get a sense of what they can accomplish for you. You’ll be told which loan programs you’re eligible for once the loan officer does a brief credit check. If you’re considering a new mortgage or refinancing your current mortgage, he/she will even provide you with an estimate of your future monthly payment. It’s time for the fee to be waived. Run, don’t walk, as far away as you can from the person who demands money to run a credit check. No, this is not an authorized lender! Indeed, all closing costs must be paid in full on the day of settlement. Termite inspections (and treatment, if required), surveys (and an application fee, if applicable) are the only costs you’ll have to pay after closing. In most cases, the interview and credit check is completed in a single day. In some cases, it simply takes a few minutes if you call or meet in person rather than fill out an online form.
Even though it’s acceptable to give out your name, phone number, and e-mail address, I don’t advocate entering particular financial information through the Internet. For example, a person’s Social Security Number (SSN), address of work, bank account numbers, etc. would be examples of specific financial information The fact that you may click a box to indicate your age, years at your present employment, yearly salary, etc. isn’t a significant concern since that sort of form doesn’t provide any specific information. Just filling out a form and sending it out into the ether to a faceless entity is a little unnerving, to say the least. No, I will not engage in such behavior.
You should check to see whether a broker you locate online has a local office you can visit. Inquire as to where they are located. After that, schedule a meeting with your loan officer and show up on time. Doing so provides an additional layer of assurance that you are working with a genuine financial institution. It’s important to make sure that your mortgage broker isn’t simply some schmuck operating out of his basement—these people do exist. Of all, it’s them who often end up in all of those heartbreaking tales. To secure the greatest bargain, spend a few hundred more dollars than your lowest estimate, rather than risk having things fall through at the last minute.
Following the first step of finding a broker, you’ll be guided through the remainder of the closing process, which includes providing bank statements, pay stubs, and tax returns. Your new loan will most likely be closed in less than a month and you will have achieved your aim of getting a reasonable mortgage rate. It’s time to go out there and hunt!
