As a mortgage broker, I notice that for every person I help, there are more that do not seem to know what a mortgage broker can do for them when they are shopping for mortgages. For those that are unfamiliar with all of the advantages of using a mortgage broker, I hope that this article will help to take some of the mystery out of the Portland real estate market and highlight the advantages of using an experienced mortgage broker such as myself within that market.
What’s Missing Out There
In my experiences, I have found the following key items where homebuyers are missing out when they
choose to try to get a mortgage independently of working with a mortgage broker:
Objective Advice—A mortgage broker or agent works independently of lenders or products. As such, he or she can objectively assess the mortgage needs of the homebuyer and then help to find the best mortgage product or products available for the client’s situation without a need for loyalty to any particular lender or product.
The competent agent will begin by discussing the client’s goals and needs with regard to owning a home or property. Based on the information gathered, he or she can then recommend particular products that seem to best fit with the client’s needs and continue to work with the client through the entire process. In addition, a broker can answer mortgage questions, discuss current mortgage rates in Portland, and address concerns about the Portland real estate market as they arise. He or she also decodes the various mortgage terms and conditions into plain English, making it easier for the client to choose with confidence.
One-Stop Shopping—Rather than waste days and weeks making appointments and comparing rates and terms with various mortgage lenders, a mortgage broker can serve as the middle man within the entire house-hunting process, since these agents tend to work regularly with many of these lenders on a daily basis. By working with a broker, the client can then concentrate on finding the right house or property while the broker gathers only the products that he or she feels would best meet the client’s needs and presents them for the client’s review.
An Expert Negotiator—A lot of people are not sure where to begin or are simply not comfortable with the negotiation process between themselves and the bank. This is often particularly true for the first time home buyer. Competent mortgage brokers in Alberta can handle the negotiations on behalf of their clients. As experts in their field, a broker has access to an extensive listing of major lenders throughout the US, including credit unions, trust companies, traditional lenders, and other possible sources of mortgage financing.
Best Possible Rates and Terms—Being pre-approved for a mortgage does not necessarily mean that the borrower is obligated to not shop further for better rates or terms. With an agent working for them, clients can be sure not to settle for the first offer received. In addition, a mortgage associate works with his or her clients until they get through the closing on their new home or property, making sure that all transactions are satisfactory and done without delays.
No Out of Pocket Costs—Brokers’ services on an average residential mortgage transaction are generally free to the clients. Instead, agents are paid by the financial institutions for matching them with dependable customers. Agents can also work with clients that have less than stellar credit by running the credit check prior to shopping rates and terms for these house hunters and then possibly working with less conventional lenders in order to provide the best possible terms.
In these cases, the agent is still paid through the financial institution. The only time when a client will likely incur any cost would be if he or she reneges on a mortgage agreement after all arrangements have already been made.(Remove this line as it is incorrect)”Add. For clients with poor credit, a mortgage professional may charge a fee to arrange financing through private financing companies.
Options for Clients With Weaker Credit Ratings
Taking this last point even further, I have often been contacted by clients unfamiliar with broker services only after they have been advised that they do not qualify for a loan from their bank. As I mentioned above, there are options for clients with poor credit that would allow for home ownership, but I also generally advise that they give serious consideration to waiting a bit in order to avoid being subject to higher rates than those with better credit scores. This type of discussion regarding limited options for clients with less than perfect credit is best held prior to any offers being made on a property. As such, I recommend always working with a broker prior to finding a property and making an offer that may or may not be viable.
Along these same lines, I also once had a client contact me in search of the best possible five year rate. In discussing the situation with this particular client, I found that he had already been offered a higher rate by his bank and he was simply looking for leverage to force his bank to lower their rate. As it turned out, the bank did offer to match the rate that I had quoted, but it did not seem that they had the client’s best interests in mind by only agreeing to a lower rate when threatened with competition.
The bottom line is that seeking a mortgage Portland can be a much smoother process if you choose to work with an experienced mortgage associate who will not only find and provide you with the best options for rates and terms, but will also work with you throughout the mortgage process up to and including the closing. Whether you simply have questions about interest rates, mortgage terms, or even how to refinance your mortgage, a qualified agent can help to obtain the answers you need.