Find local Mortgage Lender or Mortgage Broker
A mortgage broker is simply a middle man or intermediary broking home loans for businesses or individuals. The role of a mortgage broker is becoming popular lately due to the competitiveness of the mortgage markets despite the fact that banks sell their products previously. Therefore a mortgage broker is a go between the lender/bank and a borrower. Mortgage brokers are used popularly because they offer expert advice and will help point out a suitable home loan for you.
What You Need To Know When Choosing a Mortgage Broker
When in search of a mortgage broker in US, you need to consider their qualification because they need to offer sound advice which will not be offered at the lenders call centre. A mortgage broker will need to look out for you and at no time should they side with the lender and should be able to table more options unlike a visit to the lender. They should also know more about the industry, related factors like the life insurance, building and contents insurance and payment protection. The broker charges a fee either through a commission from the lenders or a one time off charge on the borrower.
Conditions of getting a mortgage
When approaching a lender it is good to factor in the down payment although it is possible to buy a home without this sum. The determining factor will be your Loan to Value Ratio and the more favorable that ratio is to the amount the property is worth, to the amount being asked for, the more qualified you get. The amount you stand to get can be calculated basing on your income, the amount of debt and the deposit at hand. Pre-approval and prequalification are terms you will encounter, where pre-approval means a lender running your credit history and pre-qualification means your social security number is not required allowing you to do comparisons of loans. Debt to Income Ratio is a consideration that is made by the lender whereby your monthly debt is considered. A borrower needs to maintain a credit ratio of 720 with lenders denying credit scores of 620 and below financing. And lastly the lender will delve into your employment history to gauge the ability to repay the facility being requested for.
Facts about Mortgage Refinancing
A home is the most valuable asset and careful considerations should be taken before engaging a lender. However there are reasons why a person can consider refinancing of a mortgage. The objective of lowering the interest rate is a viable reason to refinance since lower rates will translate to lower payments. Refinancing of a mortgage is also taken on the ground of adjusting the length which would involve increasing the term to reduce the monthly check off, or decrease the length which would mean paying the loan in a shorter span but having a heftier monthly check off. However it is a point to note that refinancing is not the only option to reduce the term of a mortgage, since paying some funds towards the principal monthly can also serve the trick.