Hi, my name is Grace. While growing up, my parents never seemed to have enough money to pay for everything. Although I knew they worked hard, I also, even as a child, could see them wasting money on things like cigarettes and over-priced holiday decorations. I wanted to be able to help them, and because of that, I always had an ear open to financial concepts. Over the years, I have become an autodidact on everything related to finance, and as an adult, I have helped my parents to sort out their finances. However, I know how hard it is to be broke and how depressing that can seem. In this blog, I am going to have lots of interesting and inspiring information on financial planning, and no, it's not just for the rich or wealthy. These tips can be used by anyone. I hope they help you!
If you are getting ready to buy a home, one of the first things you will come in contact with is the option to use a mortgage broker. There are several misconceptions that home buyers have about the mortgage broker and what they actually do in the home buying process. If you are new to this concept, here are a few things you need to know about using the broker and how they play into the whole process.
Brokers Don't Give the Loan
The first thing you need to know is that your mortgage broker handles the loan, but they do not give the loan. The will introduce you to the loan options and work between you and the loan company to secure the loan. They don't make any decisions on who receives the loan, interest rates, how the loan will be given, or anything to deal with the money itself. They simply act as a go-between to help you through the process and help the loan company service the loan.
You Don't Pay the Broker
One of the biggest misconceptions is that you will have to pay the broker during the closing of the house or at some point following the sale. There is also a misconception that the fees they do earn are attached to your overall house price. The truth is, a mortgage broker is paid by the lender. They are generally paid an upfront fee for connecting the loan company to you. This may be considered a finder's fee or a commission.
Brokers Handle the Financial Process
You may wonder what exactly the mortgage broker does during the home buying process. Put simply, the brokers handle the financial end of the process. They introduce you to the loan options you have. They file the paperwork and handle the pre-approval process when you apply for the loan. Once the loan is approved, they help you sign the papers and understand the aspects of the loan. This includes the repayment terms, interest rates, and what happens if the loan is late or defaulted.
These are just a few things you need to know about using a mortgage brokerage. Remember that the most important point of working with a mortgage broker is that they are there to help you. They can answer questions, help you through the process, and help you obtain the documents you need if you have issues. Connect with one through resources such as Power & Associates.Share
5 March 2015