Mortgage Broker
In order to select a Dallas mortgage broker, it will first be helpful to understand the role that the mortgage broker plays in the real estate financing process.
According to the National Association of Mortgage Brokers, a mortgage broker is "a professional is a real estate financing professional acting as an independent contractor." As such, the brokers role in the process is to prepare the consumers loan application, and place the loan with a wholesale lender who will underwrite and ultimately fund the loan. The mortgage broker does not work exclusively for either the wholesale lender or the consumer, but rather is a conduit between the two. He is paid a fee by the wholesale lender when a loan closes, and also frequently charges a fee to the consumer to prepare the application.
Benefits to using a mortage broker come from three main areas. First, the broker can offer a choice of loans, as they work with multiple wholesale lenders. The world of home loans has many product types, and a mortgage broker is in good position to access them all.
Second, the mortgage broker offers a level of convenience. Consider the number of facilities that you would have to visit, the web pages you would have to encounter, the number of forms that you would need to complete to obtain the information that a Dallas mortgage broker has right at hand. In a single discussion, you can relay your needs, your financial condition, the type of loan you think you want, your financing plan and the time frame in which you need financing. It is then the job of the mortgage broker to query the universe of lenders to find a loan that matches your needs. He spends the time 'shopping the market' so that you don't have to.
Finally, the mortgage broker brings an extreme level of knowledge to play. The mortgage broker works in the home loan world everyday. Most home owners will only seek financing a few times in their life. The mortgage broker can offer advice about the product that would offer the best financial position for the consumer. Sometimes that means the lowest interest rate, but more likely, it means the lowest cost loan for which the consumer can qualify in the timeframe the loan is needed.
The National Association of Mortgage Brokers does an excellent job in further clarifying the role of the mortgage broker.
Mortage Broker Summary
- A professional who introduces borrowers (you) to investors (lenders) for a fee which is paid by the investor.
- Usually works with dozens to hundreds of investors who finance the loan.
- Can find a lending product for virtually every need. If its out there, the broker can find it.
- Is frrequently working with investors all across the country. The broker plays the role of the local advocate, educating the investor on local market conditions.
- Works to find the best possible rate and other factors that meet your needs. This professional 'shops' the market for you.
Finding a Dallas Mortgage Broker
To find a mortgage broker you can run a search on Google for Dallas Mortgage Brokers. You will find that this returns a mix of both mortgage brokers and mortgage bankers.
However, if you need a quick start, we recommend Erik Frisk at Homewood Mortgage (866) 588-LOAN. We have worked closely with Erik, and his service is always top notch!
Mortgage Broker Interview Questions
Finally, when the time arrives to have a discussion with a mortgage broker, here is a list of questions that will have you well prepared for the meeting.
