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[M645]Mortgage Broker Net Branch

by Jim Kemish, Jim

If you plan to purchase a home in the near future, or if you are planning to refinance your current mortgage, you should understand the importance of the decision that you are about to make. The word mortgage is derived from two French words. The first word MORT means death, and the second word GAGE means pledge. Together they mean, in effect, that you are about to enter into a death pledge. This sounds a bit grim and may overstate the gravity of the commitment that you are about to make, but no matter how you look at it a mortgage is a serious commitment that deserves your attention.

Pre-Qualification Makes Sense

I have been a Florida mortgage broker since 1989 and run a mortgage company that serves the states of Florida, Georgia, Massachusetts, and Virginia. I speak to a significant number of people on a daily basis about their finances. Often people will call and ask to be pre-qualified months before they have begun the process of looking for a home. This is something that we strongly encourage. In some cases these prospective home owners are perfectly qualified and there is little that they need to do to prepare for making a formal mortgage application. But this is the exception to the rule. The majority of people that we speak to could benefit greatly by organizing their finances before making application.

Patience Makes Perfect

When we see that a prospective home owner could benefit from some preparation before shopping for a home we are happy to help them structure a detailed plan. In most cases sixty to ninety days of preparation is sufficient to move a borrower into the position to qualify for a better mortgage with a lower interest rate. Would you be surprised to hear that many people have trouble waiting that extra couple of months to purchase a home? This is in spite of the fact that they may have been renting for years prior to considering home ownership. It seems that the moment that the thought of buying a home occurs to most people they feel compelled to start shopping. Please consider the benefits of a little bit of patience.

One Percent Goes a Long Way

Unless you are well qualified and have perfect credit you may discover that a bit of preparation will save you more than a full percentage on your interest rate. As an example, if you were to borrow two hundred and fifty thousand dollars a single percentage point on your rate will mean a difference of one hundred and sixty four dollars per month. That adds up to almost two thousand dollars per year - and sixty thousand dollars over the life of your mortgage. For many people the annual savings of two thousand dollars could be well used on other things. It may not be likely that you will have your mortgage for a full thirty years, but regardless, the potential savings will add up.

Pick Up the Phone

Pick up the phone and call your friendly mortgage broker. As a these are the calls that I love to get. Prepared customers make our job easy. Tell your mortgage broker that you are planning to purchase a home or refinance in the near future. Ask for their advice. You should specifically ask them what things you can do over the next two or three months that could make a difference in your interest rate. A good mortgage broker will run your credit for free and be willing to take the time to review your entire situation.

The Game Plan

Everyone has a different situation so the advice that your mortgage broker will give you will, of course, be custom tailored for you. But there are several important categories that can have the largest impact on your ability to qualify for the best and lowest cost mortgage possible. The content of your credit report will be very important. There are quite a few powerful strategies that your mortgage broker might suggest which could have an important impact on your credit score within any sixty day period of time. In addition to your credit the other categories include your income, your assets ? including the handling of any gifts you might be receiving, and your property. In each of these cases there are strategies for preparation and documentation that can make all the difference.

Copyright ? 2007 James W. Kemish. All Content. All Rights Reserved.

The process of finding, buying and moving into a new house can be stressful enough, and choosing the right kind of mortgage for your circumstances can add another layer of complexity to the proceedings. This is especially true if you choose to handle it all yourself rather than going through a mortgage broker.

If it has been a while since you arranged your last mortgage, you might be surprised at the number of options available. Whereas the only real decision you would once have had to make was between fixed rate and variable, there is now an enormous number of permutations. Wading through these to compare the best mortgage quotes can be overwhelming.

If you do choose to arrange your own mortgage, there are websites that can take much of the work out of it by comparing literally thousands of different options for you. Of course, you will then need to follow the results up yourself, contact the relevant bank, building society or specialist mortgage company and make the necessary arrangements. Even then, however, you may not feel confident enough that you are getting the best deal, and given the sums of money involved you may want some expert advice for peace of mind.

How mortgage brokers can lend a hand

The alternative to doing it yourself is finding a mortgage broker, who will be trained to look at your specific requirements and compare best mortgage quotes across the market to find the deal that is cheapest and most suitable for you. In addition, they may be able to secure particular deals for you that would not otherwise be available if you chose to shop around yourself. Of course, this advice will come at a price – although the advantage you get in better rates is liable to outweigh the cost, especially when you consider the effects of compound interest on a sum of £200,000 or more.

Sometimes you will need to pay a fee up front, whereas on other occasions it is incorporated into the mortgage itself – either by adding the sum to the amount you are mortgaging for, or because the broker is paid by the mortgage company itself in the form of a commission, which is of course then passed along to you in the rates and in your monthly payments back to them: there is no such thing as a free lunch. Note that a fee should only be paid after completion; brokers can ask for it at any time, but it can be problematic if you have already paid and the deal changes before you have signed on the dotted line.

Within reason, then, you can consult more than one broker without financial penalty. This may be advantageous as some mortgage brokers have special deals with certain lenders.

Your mortgage broker should be authorised with the Financial Services Authority (FSA), or must work for FSA-authorised firms, and you should be sure to check this as soon as possible. The authorisation means that they are bound to follow certain rules, which ensure standards of competency and fair treatment for clients.

Article Source : What Is A Mortgage Broker

About Author

Both Jim Kemish & Steven Clarke are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Jim Kemish has sinced written about articles on various topics from College Student Loan, Credit Loans and Free Credit Report Score. Jim Kemish is the president and founder of Power Mortgage, a based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 and se. Jim Kemish's top article generates over 301000 views. to your Favourites.

Steven Clarke has sinced written about articles on various topics from Travel and Leisure, Mortgage and Finances. Steven Clarke – Marketing Manager – The Mortgage Broker – Providing a of the whole mortgage lender market to find you the b. Steven Clarke's top article generates over 22200 views. to your Favourites.