Buying a home or a property in Maryland or Virginia comes with many steps we need to follow. As you know you need to search for what you are wanting to purchase, then you need to find a mortgage broker to help you get through the process. This is a sure set way to know that you have all the information you will need and will be able to figure out what kind of mortgage you need to try to obtain. A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses. Traditionally, banks and other lending institutions have sold their own products. As markets for mortgages have become more competitive, however, the role of the mortgage broker has become more popular. A mortgage broker is an intermediary who brings mortgage borrowers and mortgage lenders together, but who does not use their own funds to originate mortgages. A mortgage broker helps borrowers connect with lenders and seeks out the best fit in terms of the borrower’s financial situation and interest-rate needs. Finding the right lending company is highly important in the steps to purchasing a home. In this article, we will discuss what a mortgage broker does for their clients and how you will be benefited by having one during the process.
Mortgage Brokers
Mortgage Broker FAQ
Mortgage brokers will need a few things from you at the start of the process. Your mortgage broker will expect you to have your documentation prepared as much as you can. This includes having two payslips ready or, if you’re self-employed, having two tax returns on hand. You will also need evidence of any other income and assets such as shares, dividend income, and other investments. We will list some of the main items you will need to have ready prior to meeting with your broker:
What to bring to your Mortgage Broker
- Income Documents. Your broker, and lender, will want to ensure that you are able to cover all of the costs associated with buying a house.
- Proof of Available Funds.
- Detail of your outstanding debts.
- Property examples can be helpful!
- Questions and curiosity! Ask as many questions as you need. Think of them prior if possible
- 3 months of bank statements (checking or savings account)
- Most recent RRSP and investment statements.
- Gift letter for a gifted down payment.
- Source of borrowed funds (eg: line of credit) if qualified.
What to Ask Your Broker
Questions to ask:
- How will you decide which loan is best suited to my personal situation?
- Are you a licensed home loan broker?
- How much experience do you have?
- How will the lenders pay you?
- How many lenders do you have on your panel?
- How much should I borrow?
- What fees will I inquire when taking out a home loan
- What information do I need to give you to obtain my finances
- What features are included in my new loan? Are they right for me?
When you got to see your mortgage broker they may mention what they call “Mortgage Documents” What they mean by this is, the Mortgage or Deed of Trust is a legal document in which the borrower transfers the title to a third party (trustee) to hold as security for the lender. By signing this document, you are giving the lender the right to take back the property should you fail to repay your loan as agreed. Lenders consider several factors when deciding whether to approve your mortgage application. They look at your income, down payment, assets, debts, credit, and the property itself. Lenders look at various aspects of your spending habits before making a decision. First, they’ll take the time to evaluate your recurring expenses. In addition to looking at the way you spend your money each month, lenders will check for any outstanding debts and add up the total monthly payments. When you are providing your bank statements to the mortgage broker, keep in mind you’ll need to provide 2 months of your most recent statements for any account you plan to use to help you qualify. If the account doesn’t send monthly reports, you’ll use the most recent quarterly statement.
Another thing to keep in mind is fees, some brokers charge a fee to arrange your mortgage or for mortgage advice. This might be a percentage of the mortgage amount or a flat fee. Not all brokers charge a fee so if you are planning to use a broker it is important to ask about this and to find the broker that best suits you and your needs.
MCS Mortgage Services; Mortgage Broker
MCS Mortgage Services has many years of experience serving Maryland and Virginia as well as surrounding areas. If you are looking into your first home and are searching for a mortgage broker near me contact MCS Mortgage Services today. We look forward to serving you.