Thursday, June 15, 2006

What is a Mortgage Consultant?

A Mortgage Consultant (a.k.a. Mortgage Broker, a.k.a. Mortgage Planner), is an intermediary between the borrower and the mortgage lender. The mortgage consultant will do the leg work of shopping your needs around to several different lending institutions to find the best product and service to fit your situation. They look for products that will best suit your specific situation and circumstances based upon a combination of features, rates, and add-on options. One good thing about using a mortgage consultant is that there is usually no charge for their services, the lender pays their fee! If your situation dictates that you are interest rate sensitive though, you can 'pay points' to the mortgage consultant and the mortage lender will lower your rate (known as a Rate Buydown, I'll go over this concept in future blog posts).

So Why Should You Use a Mortgage Consultant?

Homeowners should aggresively search out the best product and terms from a lender. This seems like common sense, but can often times be overwhelming. Thus, using a mortgage consultant becomes an alternative option when compared to negotiating personally with only one or a few lenders. Mortgage consultants have access to a large variety of lenders and often 'whoelsale lenders' who do not deal directly with the individual consumer/borrower. They are skilled in negotiating with lenders for the best possible terms, and displaying your specific situation in the most favorable light possible.

Mortgage consultants are also a wealth of knowledege, unbiased information, and help when analyzing the dozens of options available in todays mortgage industry. Questions that seem like impassable blocks to inexperienced borrowers, are often easily managed by an experienced mortgage consultant. Things like, the advantages of cash-out refinancing instead of a HELOC/HELOAN, troubles getting financing because your self-employed, or arranging financing for investment properties are often very simple things for a mortgage consultant because of their extensive experience.

Just like a baseball team has a Manager, a batting coach, a pitching coach, a physical trainer, and other coaches; you should have similar people on your team including a real estate agent, certified financial planner, mortgage consultant, etc...

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