Mortgage Brokers and First Time Buyers
First-time buyers are often intimidated when they consider taking
out a home mortgage loan. The paperwork involved, the confusing
terms like “points” and “escrow”, the
varying qualifications, the different loan products, and even
the possibility of being “scammed” – all these
things can be hard to understand if you do not have any experience.
Avoiding pitfalls and achieving the best result is difficult even
for those who have gone through it before. Someone who is new
to the home buying process is particularly vulnerable to poor
decision-making and even outright exploitation.
One way to get clear explanations and a good, professional analysis
of your particular situation is by using a mortgage brokers. Mortgage
brokers do not lend money or approve loans. Rather, they act as
a middleman between the consumer and lending entities, which are
sometimes also referred to in this context as “wholesale
lenders”. Using a mortgage broker is a viable alternative
to going directly through a bank or other lending institution.
For first time buyers, having a relationship with a certified
mortgage broker they can trust might mean the difference between
succeeding in being approved for a mortgage loan or being turned
down because they applied with a lender who was inappropriate
for their particular situation. Using a mortgage broker means
you have someone who know what they are doing to guide you in
looking at lenders who are best matched with your needs.
Having a mortgage broker available to explain lending concepts
and how they will impact the bottom-line of your mortgage loan
will also lessen the chance that you’ll “bite off
more than you can chew” as far as monthly mortgage loan