Mortgage Brokerage Firm Richmond

Various Questions Which Mortgage Brokers Should Answer

Best Kind of Loan

The mortgage broker would firstly be tasked with evaluating your financial needs, before suggesting suitable loans. In order for the correct kind of loan to be selected, factors such as the term of the loan and the types of interests rates should be considered. Talk to your broker and have them explain the different kinds of loans. There are interest-only loans, fixed-rate loans, adjustable-rate loans and negative-amortization loans to name some. Before you decide what type is best for you, it is very vital to be abreast of all the related information.

Annual Percentage Rate and Rate of Interest
APR, the annual percentage rate will determine the incurred costs over the duration of the loan. Generally, the APR is higher than the interest rate as it comprises fees and loan transaction costs over top of the charged interest.

Costs Involved and GFE
You would likewise be required to pay towards third party expenses, in addition to the brokerage fee. This consists of credit report, pest inspection reports, and fees for property appraisal, escrow if applicable, recording fees and taxes. Make certain you have a clear idea regarding each of these costs. It is very essential to clarify any doubts you have with the broker in advance. Be certain you ask any concerns if you feel that you are being forced to take out any extra insurance, or sense that you are being unfairly charged for a service.

A genuine lender will be able to provide you with an estimate of these fees and charges in the form of a GFE or likewise known as Good Faith Estimate in 3 days from the date you applied. As per federal law, a GFE can be offered and if the lender fails to do this or does not offer a guarantee for his estimation, it is better to look for another lender.

Prepayment Penalties
Within the USA, prepayment penalties are no longer allowed by all of the states. It is a great idea to ask your mortgage broker if there are any fees for prepayment charged by the lenders. If the state does permit such charges and you choose clear the loan before the term ends, check out whether or not the loan comes with a pre-payment penalty. It is better to avoid mortgages which come with such a penalty because they do not give you the flexibility to become debt-free faster.

You will need to pay the equivalent to 6 months of interest when there is a soft prepayment penalty. This payment is paid upon refinancing, or nothing is paid if the property is going to be sold. Where a hard prepayment penalty is concerned, you must pay a penalty for a specific amount of time whether or not your refinance the home or sell it. In order to avoid a loss in the future, accept the prepayment penalty clause only if you are positive you would stay in the house until the mortgage is finish.

It is vital to discuss the above questions with your mortgage broker at the time of the loan transaction. A broker who guarantees an exact time for funding would not be able to be trusted because the date or time for releasing finances is not completely decided by the lender.

Click to Download the pdf

Richmond Mortgage Brokers

  • Commercial Mortgage Broker Richmond
    Mortgage Brokers And The Things They Carry Out To Help Clients Purchase A Home

    At times there is confusion as to the difference between mortgage brokers and lenders. The lender provides the actual loan money, while the mortgage brokers will work directly with the lender and act for the borrower. Mortgage brokers could work either with a company or independently.

    A mortgage broker is responsible for shopping around for the best loan agreement which will suit their clients specific requirements. They work directly with numerous lenders to make certain that their customers receive the right loan for their personal condition. It is common for a broker to have upwards of a hundred lender contacts. Hence, brokers could more likely assist customers who have specialty needs, like problem credit, than individual lenders are.

    It is a rather easy process to get a loan. The borrower will submit applications to their mortgage brokers. The broker would take that information in order to look for the best lender, lock in terms and rates. Likewise provided are federal and state disclosures. Employment verifications, credit reports, asset disclosures and property appraisals are acquired by the brokers and given to the right lender when the application is deemed finished. It is then the lender's duty to handle the loan approval and disbursement.

    One more common task of a mortgage broker is to provide their clients with basic credit counseling. This is to help the borrowers correct any credit problems that they might have, as well as to advice them on ways they may get loan rates that are better. Brokers break down the application process and ensure their customers understand every factor of their loan. Nevertheless, once the process of the loan is finish and the borrower has obtained a mortgage, the borrow is unable to provide any additional help. Any future questions must be asked of the lender.

    Normally, the brokers will earn a small commission for bringing the lender and the borrower together. The buyer would indirectly pay the mortgage broker with additional loan points and closing costs. It isn't until after closing the loan that the mortgage broker is paid.
  • Mortgage Broker Richmond
    Make Real Estate Transactions Easier - Employ A Licensed Mortgage Broker Amongst the most difficult aspects of a real estate transaction is looking for the best financing to suit your needs. There are a lot of packages and options available ... More
  • Mortgage Broker Service Richmond
    Use A Mortgage Broker And Avoid The Complications Of Real Estate Deals Did you know that approximately one out of five Canadians utilize the services of a mortgage broker? This is because utilizing the resources of a broker could usually save ... More
  • Mortgage Brokers Richmond
    Mortgage Brokers And The Way They Truly Get Paid A mortgage broker acts as a liaison between the borrower and the lender. Businesses or individuals come to them and ask that they broker mortgage loans on their behalf. Before it has been up ... More
  • Find a Mortgage Broker Richmond
    Mortgage Brokers - Searching For The Right Deals And Rates To Suit The Requirements Of Their Clients Some home buyers only believe that they could acquire a mortgage through a bank. There is however, a different alternative since mortgage ... More
  • Richmond Commercial Mortgage Broker
    Different Benefits Of Using A Mortgage Broker Enlisting the services of a mortgage broker could be a big decision for a first time buyer. They are on the other hand, able to access a wider selection of mortgage products giving the buyer a more ... More
  • Richmond Mortgage Brokerage Company
    Various Questions Customers Must Ask Any Mortgage Broker Do some work to find the right mortgage broker and do not work with just any old broker. To be able to select a reliable firm, take the time to interview several candidates even if you ... More
  • Richmond Mortgage Brokers
    Mortgage Terms Frequently Used And Their Meaning Prior to going into a long-term binding agreement, every customer should know what the many mortgage terms mean. This is a list covering the basic terms that are usually used in a mortgage ... More

Richmond Mortgage Brokers

Richmond Mortgage Brokers
Richmond, British Columbia

Phone: 778-732-0181