When it comes to finding a mortgage, most folks seek advice from banks. But if you truly want the best advice to make sure your application isn't denied, you're much better off speaking to a licensed mortgage professional.
Mortgage Loan Professionals vs. Banks
First time home buyers usually spend a lot of time going to banks in hopes of finding the best advice. However, it would be much more beneficial for them to seek individualized advice from a licensed mortgage loan originator (MLO).
It's common for a bank to try and sell a buyer's mortgages from them, leaving the buyer with no price comparison and many factors glanced over. But, when a mortgage professional is involved, they can help give the buyer specific feedback on their specific financial situation. Licensed MLOs tend to have more focused the knowledge of the marketplace and the options involved - matching you up with a mortgage provider that can effectively suit your requirements.
The Real Importance of the Consultation from a Mortgage Professional
Back in the day, all the house loans had fixed amount deals. With this being said, the price and the payment periods were similar in all options.
These days, the classic loan companies have become more advanced and started to refund home loans. However, the property lending sector had been suffering from too many modifications involved, and that was the time when mortgage brokers stepped into the marketplace. Now, a first time home buyer's first option should always be get the help of a licensed MLO. Why?
Mortgages now come with many instructions, whether they are created by the government or not - there are things like escrow accounts, appraisals and many other forms which were not present in the past. In a nutshell, the whole mortgage business has grown into a larger and more complicated one and left many first time home owners struggling to choose the right decision for their future.
Getting the Best Mortgage Offer
A licensed MLO will be able to help you save as much money as possible by choosing the best mortgage program based on the buyer's individual situation. It's common for first time buyers to get a little excited and jump on their dream home, even if it's out of their budget. A mortgage professional will help keep you from purchasing a home that is out of your budget. Having an experienced professional to help guide you into a realistic, practical purchase can help benefit you in the long run.
Asking the Right Questions to Ensure the Best Mortgage Decision
Financial blindness is a syndrome that happens to many homeowners compromising the advice of a professional mortgage specialist. And with this so-called syndrome, successful property search is nearly impossible. On the other hand, a mortgage loan professional can help avoid any such blindness and ask all the right questions tot make difference in the decision of the buyer. They'll ask questions such as:
- Is the mortgage structured to a single income or is there a second income as well?
- Who is going to pay the closing costs and should they be considered when an offer is made to the seller?
- How does the size of the mortgage affect the personal tax issues?
- Do past credit difficulties preclude securing a mortgage offer?