by: Dan Lewis
Using a mortgage broker to shop for home loans can make the borrowing process a lot less stressful than doing it yourself. Here are the nuts and bolts on getting a good broker.
Competent Mortgage Brokers
There are a couple of obvious situations where going with a mortgage broker makes perfect sense. If you have less than perfect credit, a mortgage broker is going to be able to open your eyes to numerous loan options a traditional bank would never tell you about. If the idea of handling the mass of paperwork involved in the loan application scares you, a mortgage broker is definitely going to be a savior since they will take on that burden. Still, how do you know if you are talking to a competent broker?
The first issue to address when considering whether to use a mortgage broker is scope.
Scope refers to the number of different lenders the mortgage broker works with in home financing. Generally speaking, the more lenders the broker works with, the better mortgage options you will get and, ultimately, the better financing. A good mortgage broker should have at least eight different lenders they work with and be able to go find others should your particular situation call for a special financing package. If the broker identifies only two or three lenders, you need to move on to the next broker.
The second biggest issue is the mortgage broker?s knowledge of the lending industry. By knowledge of the industry, the broker should be able to identify multiple lending programs and the various lenders and options for each. For instance, you might ask the broker who he works with and the loan options available for a person with a 580 [poor] credit score. Further, ask the broker if he has arranged funding for such loans before and the specifics of the loans used. If the broker shows a depth of knowledge and starts rattling on about options, you?ve found the correct broker. If they don?t, you haven?t.
Broker Fees
Mortgage brokers are paid upon performance. If they don?t get you a loan, they don?t get paid. The positive aspect of this is you can be the mortgage broker is going to bust their tail coming up with a solution for your problem. The negative aspect is you need to make a determination as to whether the options give to you are good loans for your situation. The commission of a mortgage broker is typically paid out of the loan proceeds, but costs such as appraisals are your responsibility. The broker should have no problem telling you their commission rate on the loan.
If you don?t trust banks to give you the best deal or have been turned down by a lender, mortgage brokers are a great way to find good deals. Understand the nuts and bolts of what they do and you are on your way to getting a loan.
About The Author
Dan Lewis is with http://www.gwhomeloans.com - a San Diego mortgage brokers providing San Diego home loans. Visit http://www.gwhomeloans.com/services.html to learn more about options on San Diego mortgages from a San Diego mortgage broker company.
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Buying A House After Bankruptcy - Things To Consider
Buying A House After Bankruptcy - Things To Consider
by: Carrie Reeder
Bankruptcy can make getting any kind of financing much more difficult. However, it's not impossible anymore to get financing, even a few days after the discharge of a bankruptcy. But, is getting a loan soon after a bankruptcy a smart thing to do?
It can be tempting to buy a new home, new car, etc., after a bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment. Here are some factors to consider before committing yourself to a new house payment.
Pre-Payment Penalty - Almost every subprime loan (bad credit loan) now comes with a pre-payment penalty. This penalty is usually about 6 months worth of house payments. The pre-payment penalty period usually lasts 2-3 years. That means, if you want to refinance or sell your house in that period of time, that will make it very difficult, if not impossible to sell or refinance....
Buying A House After Bankruptcy - Things To Consider
Financing > Buying A House After Bankruptcy - Things To Consider
Top 7 Finder's Fees Tips
Top 7 Finder's Fees Tips
by: Stephen Pope
Consider the lucrative opportunity open to you in earning finder's fees.
A finder is someone who finds something for a person or business. The amount paid for this service is called a finder's fee.
Here are seven tips to help you make your fortune in finder's fees.
1. A finder simply introduces a buyer to a seller for a fee. He does not become involved in the sales process and is not an agent acting on behalf of the seller.
2. The best areas to earn finder's fees are those in which you already have expertise and interest. For example, if you are an expert on airplanes and have connections in the aviation industry, you could earn finder's fees finding suitable planes for those needing them.
3. Protect yourself with written contracts. Also, document all efforts you have made to earn your finder's fee.
4. You can earn finder's fees in many areas including equipment (used...
Top 7 Finder's Fees Tips
Financing > Top 7 Finder's Fees Tips
Buying Versus Leasing A Car
Buying Versus Leasing A Car
by: Jeff Neilan
If you are considering whether to buy or perhaps lease your next car and which would afford you the best deal, most consumer experts agree that from a purely financial aspect you will be better off in buying your next car.
Of course paying cash in full is the best possible scenario since with this option you would avoid any type of finance charge. But for the vast majority of us and for the scope of this article we?ll take a look those purchases or leases that involve financing.
In the short term leasing may look attractive to you because monthly lease payments will more than likely be less than the monthly payments of a purchase agreement. Why? Because with a lease you are essentially only paying for the part of the car you are going to use. It?s kind of like splitting the cost of a pizza with someone. You are only paying for the pieces that you are going to eat. In car terminology the part...
Buying Versus Leasing A Car
Financing > Buying Versus Leasing A Car
How to Find Low-Cost Auto Financing
How to Find Low-Cost Auto Financing
by: John Mussi
Buying a new car can be expensive? especially when you finance the car and have to pay interest and lender's fees on top of the price of the car. It is possible to find lower-cost automotive financing, however, provided you're willing to take the time to shop around for both your new vehicle and the loan to pay for it.
Below you'll find some basic suggestions that should help you to not only find the car or other vehicle that you want but also to save some money in the financing loan that you use to pay for it.
Where to shop for a car
If you're planning to finance all or some of the cost of your new car, you'll have a much easier time finding low-cost financing if you purchase your car through a dealership. Many dealerships have special financing deals worked out with certain lenders, and the fact that you're buying the car from a dealership helps to provide a guarantee for the...
How to Find Low-Cost Auto Financing
Financing > How to Find Low-Cost Auto Financing