Mortgage Broker For 2015 Mortgage Refinancing
Do You Need A Mortgage Broker To Refinance Mortgage in 2015? A home is probably one of the most expensive purchases for most people. According to a survey in early 2011, only 48 percent of buyers prefer to hire a mortgage broker to assist them through the monetary procedure of refinancing a mortgage.
A mortgage broker works like as a liaison between the borrowers and lenders. The broker provides the borrower most favorable and easy rates and terms. They also carry out all the necessary paperwork on your behalf and usually coordinate with a number of lenders to get the best refinancing plan for you.
Broker Saves You Time & Money When Refinancing
Many people advocate the benefits of hiring a mortgage broker for various reasons through their constructive experiences. The most essential benefit of hiring a mortgage broker is their competence to reach and network with different lenders in order to secure the most viable terms and rates for you.
According to a mortgage broker, buyers who are refinancing mortgage for the first time, wander from one lender institution to another to secure the best rates. These people not only waste their time, but are also unable to get the same quality of service that a professional mortgage broker is given.
For lending institutions, it is very easy to deal with mortgage brokers about the financing aspects. However, the best advantage of hiring a mortgage broker is that the lenders cannot wrap up any hidden costs and fees because brokers are well versed in this area. On the contrary, a common person can be easily fooled into these matters because of his inability to comprehend and conceive the intricacies of such dealings.
In addition to these reasons, a mortgage broker knows refinancing tips and tricks to enquire each and every financial aspect into great detail. A borrower has many questions to ask, but he/ she might not be able to get appropriate answers or might even get swayed away with incomplete information. Regulations are swifting all the time, you need a mortgage broker to refinance in 2015 so you know you do not miss the relevant ‘small print’ details.
Ideally, you should hire a mortgage broker, if he/she is willing to educate you about the complete process along the way. This is even more important if you are refinancing mortgage for the first time. Usually, mortgage brokers do not work at normal banking hours, so it is very easy for them to get hold of the detailed information and best rates.
How Much Are Mortgage Broker Fees
Mortgage brokers work for free, so instead of charging fee from you they get commission from the lenders when a deal is finalized. The commission varies, depending on the kind of mortgage. For example, fixed terms usually pay more commission as compared to variable terms.
A mortgage broker will assess your credit report only once for all the lenders. Contrarily, if you go out to get the rates yourself, the lenders will get your credit score copy on their own. If your credit score is below 700, you should probably get it fixed before you apply for refinancing.
Make Sure You Clean Your Credit Report Prior To Refinancing
The mortgage broker is not a magician, you should raise your credit score by few points, to lock better rates. Note, that the process of rebuilding your credit score is not an instant process, it means that if you begin TODAY, you will be in a better situation at 2012 ready to refinance and get better mortgage rates!
You can raise your credit score by yourself, by getting the Credit Repair University guide, to guide you through. If you get your score up even by 30-50 points, you will be saving thousands of dollars and be approved faster by lender.
Whenever you hire a mortgage broker, make sure you know them directly or indirectly and ask them as many questions as you want. However, the best way to hire a mortgage broker at 2015 is to speak to different brokers, see how they are familiar with the mortgage plans and lenders that match your needs (FHA? VA? USDA?). Make a phone call, review the service attitude, ask many questions, see if they are calm or stressed to finish the meeting. Ask real estate agents too, they meet mortgage brokers and know them better. Then choose the best one.
So What Is The Next Step?
If you will do nothing.. don’t expect anything to happen. You must bump your credit score up! It will give you better leverage when facing the lenders, and better negotiation position when applying for any financial need.
Lets not forget you are probably paying $500-$1000 extra per year in higher interest rates, and credit payments.
If your score is below 700, you might want to clean it yourself – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..
Don’t be cheap when it comes to financial education.. Ignorance costs more.