Franklin Financial Group Blog

With the mortgage industry going through some tough times, services provided by mortgage brokers are extremely valuable.  Mortgage brokers have the ability to shop among multiple lenders for the best programs available to borrowers.  Instead of borrowers trying to do this on their own, and possibly encounter much confusion as to why differences exist and what they mean, a mortgage broker can handle this for them. 

Borrowers first need to find a mortgage broker that they can trust, preferably one that works mainly on a referral basis.  A mortgage broker that has built their business on referrals shows that they must be doing things right for their customers, or they would not continue to be referred to others. Secondly, borrowers should find out the level of experience and any credentials or designations that mortgage broker has obtained.  Someone who has been working in the mortgage industry long enough can tell you that it is very cyclical.  Understanding these cycles is key to helping borrowers get the best financing available to them now, and how that may affect them in the future.  Third, and maybe the most important of all is that borrowers must seek out as much information as they can before and during the loan process so that they are giving themselves the highest chances of understanding the financing terms and programs they will be choosing from. 

With the key factors mentioned in place, borrowers can now put their chosen mortgage broker to work.  With many lenders no longer in the industry, mortgage brokers can search the lenders still offering their services, and choose which of these lenders has the best programs and rates for the borrower.  Borrowers simply cannot keep track of the day to day changes that occur within the mortgage industry, while a mortgage broker can.  It is part of a mortgage broker's job to keep current with these changes so that they may do the best job for each borrower they work for.  As rates fluctuate, a mortgage broker can monitor these changes, and if rates take a turn for the better, they can then move the loan over to the lender offering better rates for their borrowers.  If a borrower goes directly to a bank, often if rates drop, the borrower may be stuck with a higher rate than they could otherwise obtain.

Niche products such as Stated Income, No-Income or many other types of verification products fall under the Alt-A title.  While these loans have been scrutinized as of late, they still have a definite place of value in the market.  Mortgage brokers have access to these products, while local banks may not be able to offer them. 

Successful mortgage brokers not only know how to place and process mortgage loans, but they should also be able to consult a borrower if qualification is not currently available.  Many borrowers have issues that keep them from qualifying for a mortgage loan. These borrowers should know what these issues are, and what to do in order to correct the issues that exist. A mortgage broker should be able to advise you on issues they see that are keeping the borrowers from obtaining financing, and help the borrowers devise a plan of action to fix these issues, so that financing will be available in the future.

Financing and owning a home is an integral part of the American Dream.  Mortgage brokers are key to helping people realize this dream.