Purchasing a home can be a confusing time for first time home buyers. In the game of the purchasing and selling of Real Estate there are 5 main players. The buyer, seller, their respective real estate agents, lender, and most importantly, the mortgage broker. A mortgage broker is more than just the individual who sets up your new loan. They are also the only player in the game that truly has the buyer’s best interest in mind.
Mortgage Broker: The Translator
Not everybody has a background in real estate and mortgage brokers understand that. While initially setting up your loan, your prospective lender will require certain documents from you and/or about the property you are purchasing. Some of these documents may include, a marketable title, a preliminary HUD-1 statement, and a 1003. As a first time home buyer, you will need a mortgage broker to convey these in layman’s terms to you. Thankfully, mortgage brokers are well versed in the vocabulary used by real estate agents, lenders, and even title companies.
Mortgage Broker: The Negotiator
For those of us with less than perfect credit, obtaining a mortgage straight from your local bank can be frustratingly futile. Banks look solely at the bottom line (i.e. your credit score) to determine whether you are eligible for a mortgage loan or not. A mortgage broker has access to several lenders at any given time which allows them to navigate what each lender can offer you. Not the other way around. Additionally, mortgage brokers will negotiate interest rates and loan terms on your behalf to the lender; considering your best interests all throughout the process. The types of loans that are available (fixed, adjustable, hybrid) contain fine print conditions that could greatly effect your monthly payments. A mortgage broker can work with you to match your budget to the right type of loan.
Mortgage Broker: The Ally
Mortgage Brokers acts as a go-between for all of the parties involved in the purchase process. There are hundreds, if not thousands, of mini conversations occurring on a daily basis between all of the parties that you, as the buyer, are not aware are even taking place. Some of these conversations are about how the lender may need more information to go forward or how the title provided to them by the seller has certain liens that concern them. The broker will resolve these issues on your behalf so as to not worry you with every little detail. This is a huge asset to having a mortgage broker. There are numerous tasks for a first time home buyer to complete without having to deal with every item that may come up in the purchasing process. Most importantly, mortgage brokers do not keep typical “bankers hours” and have multiple means of contacting them, such as office number, mobile number, and email address. Because although you may not want to be involved in every minor occurrence in the process, you would still want to know that your issues can be resolved when and if they arise.
The mortgage broker is an integral player in the game of real estate and can be a first time home buyers best tool in having a smooth closing transaction. Purchasing a home is a celebrated event and a mortgage broker; no matter how many loans they have completed, can still appreciate that fact.