Ohio mortgage broker - When shopping for a new mortgage, it is always a good idea to make sure that your mortgage broker is licensed in Ohio.This is especially important if you are shopping your rate through online brokers. Lots of brokers will be from out of state and the regulation is getting tougher for out of state brokers to place the loan within your state.
If you work with a broker in another state, there is a good chance that they are licensed to broker loans in many more states other than yours. This means that they probably aren't as familiar with the real estate market and government regulations in Ohio. More important, it means you won't be able to meet the person who is helping you get a mortgage. While this won't necessarily be a problem, most people like to be able to meet the person who will play such a large role in their financial future.
Why use a mortgage broker - There are many reasons that you should use a mortgage broker and many advantages to using a mortgage broker. One reason to use a mortgage broker is because a mortgage broker has access to all kinds of different home loan programs.
A mortgage broker's job is to assess your situation and then shop your loan thru 100 different lenders in order to find you the most beneficial loan for your situation. We have access to over 1200 different loan programs and are able to obtain wholesale rates which can save you $100,000 plus over the life of your loan.
Here's something to keep in mind. As a mortgage broker, I'm completely independent. I'm not employed by or work for any bank or lending institution. I work for my clients. The bank is going to look out for its best interests, isn't it nice to have someone working for you, the borrower, and looking out for your best interests?
Many mortgage brokers have expertise in certain types of loans, such a construction-to-permanent loans, poor credit loans, or reverse mortgages. If your situation has special obstacles a mortgage broker may be the best answer.
A mortgage broker is an individual or firm that acts as an independent agent for both the borrower and the lender of a mortgage loan.
Mortgage brokers are the middle man between you and the lending institution, which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual private investor. A mortgage broker will analyze your financial situation to determine which lender is the best fit for your loan needs.
Mortgage brokers have the advantage of being able to access dozens of rates quickly for similar loan programs from different lenders. Although banks have similar programs, their rates can vary widely. Mortgage brokers, through experience and through searching rates, can find which lenders are offering the lowest rates at any given moment.
Mortgage brokers have more options than banks. For example. if you have poor credit and need a subprime loan, your bank may have access to one option. A mortgage broker would have access to dozens.
Other situations where mortgage brokers would be able to provide you with more options than a bank include manufactured homes, rural properties, commercial properties, first time home buyers, and special credit situations, such as bankruptcies and foreclosures.
Working with a mortgage broker has many benefits. Just to name a few: we discuss and explain the programs that are available to you in your particular situation. We inform you in writing that you loan interest rate is locked and wont change. We explain all the documents in plain English so you understand what you are signing. We explain all the costs involved in closing the loan. We give you a timeline of the loan process. We provide you with a good faith estimate. We also coordinate the final closing of your loan.
Mortgage brokers have access to wholesale rates, where as your local bank only has access to the rates that they offer. This can save you money on your monthly payment, especially if you have a unique situation that your bank will not be able to handle.
Mortgage brokers are also familiar with the area in which they operate. Using someone local has big advantages. With so much mortgage information online, it's hard to know who to choose. If something goes wrong along the way with your loan, it is easier to deal with if you have a loan officer you can meet with face to face rather than a website or 800 number.
A mortgage broker is also able to move your file to another lender should a better deal appear. Or if there is a problem with your file in underwrting your mortgage broker can switch lenders within minutes and ensure you meet your close date. Local banks cannot do this.
Questions to ask your mortgage broker - When you apply for a mortgage loan there are many important questions you will want to ask your mortgage broker. The questions you ask will give you a clearer picture of the mortgage you will be receiving and if it is the mortgage you want. These questions are but are not limited to the following.
Will I be charged points
Some lenders will charge points and others will not. Points are reflected as origination fees on your good faith estimate. Some brokers charge points as a fee for their service others charge them to provide you with a lower rate.
How long is my mortgage fixed? How often can it adjust? How much can it adjust for any one adjustment? What is the lifetime limit on the rate? What would my payment be if the rate were to go that high?
You need to know these answers for Adjustable Rate Mortgages. You need information about how your payment would rise in a worst case scenario so you can make an intelligent, informed decision. A good experienced loan officer can quickly calculate these numbers for you.
Does my loan have a pre-payment penalty?
Some loans come with a pre-payment penalty and should be disclosed when being presented to you as an option. A loan which has a pre-payment penalty feature may reduce your interest rate or cost, but it may also cause you problems if you decide to sell your home or refinance before this pre-payment period is up. A pre-payment penalty can be as much as 6 months of interest payments.
Will you sell my information to other loan officers?
This question is especially important if you are applying for a mortgage online. Many mortgage websites on the internet are "leads" companies that gather and sell applicants' information to other mortgage companies for a profit. These "leads generating" websites often advertise to have multiple lenders competing for your business. The truth is they would sell your information to various companies. To avoid having your information being sold and resold, and being harassed by endless phone calls for years to come, work only with mortgage brokers and lenders who do not sell your information.
Something to ask your mortgage broker is:
What will my total closing costs be?
Your broker, or any mortgage loan officer, is required to provide you with an estimate of your closing costs within 3 days of loan application. This is a great time to review what this home-loan transaction is going to cost you and ask questions about any fees or charges that you are unsure of.
May I see the Amortization Schedule?You may want to ask your mortgage broker for the amortization schedule. This gives a clear and concise 'Landscape View' of the amortization. For most non professionals, it is easier to spot term and rate adjustment properties of the loan this way.
Does my mortgage have a Pre-Payment Penalty
A Pre-Payment Penalty is a fee that is charged to by the lender if you refinance or sell your home within a given period of time. Pre-payment penalties are very common with sub-prime loans. Even with a mortgage from a more traditional bank you may have or want a pre-payment penalty. There are very few circumstances where a pre-payment penalty will interfere with your future plans. Accepting a pre-payment penalty may also lower your points and/or rate on the loan.
How long is my preapproval good for?
The length of a preapproval letter can vary, in general they are good for 30 days. If your preapproval letter expires, you will need to become prequalified again by your mortgage professional.
How Long is my rate fixed for
It is better to ask how long your rate is fixed for because it forces an honest answer. More unethical brokers may respond to the question, "Is my rate fixed or adjustable" with something misleading like, "You have a 5 year fixed 30 year mortgage." While many people might misinterpret this to mean that it is fixed for 30 years and not hear or understand the 5 year comment, the truth is you are getting a 5 year ARM. If you ask, "How long is my rate fixed for" the same broker might be more compelled to answer with "5 years" indicating that the loan is adjustable.
