Also known as mortgage brokers...
I found an interesting article online discussing mortgage brokers on cnnmoney.com today. Here is an overview.
"A good one (mortgage broker) can save you time & thousands of dollars over the life of a loan."
"It's up to you to understand the loans you're being offered and the fees involved."
Key Questions:
Do I need a broker?
-Do you understand mortgage products? 30 fixed, 2/28, 3/27, IO
-Do you know where rates are right now? 30 fixed, short term
Brokers can help. They have access to wholesale rate sheets from many banks & have the time to shop rates. Afterall, its their job.
Who can I trust?
Find out the following:
-How much does the broker stand to make on your loan?
-How will the broker make money (Fees &/or yield spread premium)
-If you don't feel comfortable, talk to another broker!
Am I getting a fair deal?
-$0 application fees. ONLY appraisal ($350) & credit ($13 - $25) should be charged in advance. That being said, these fees should not be required to complete an application.
-What are the pros & cons of at least 3 different types of loans
-Understand terms of loan (rate, fixed or adjustable, prepay, margin, rate cap, etc)
-The broker should be able to guarantee fees once the loan is locked.
-Request paperwork (a copy of the HUD-1) before closing & compare them with the good faith estimate
http://money.cnn.com/2007/07/24/real_estate/salesman_factor.moneymag/index.htm
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment