In our last installment we discussed a few of the mishaps that can occur when looking for a home loan without the help of a mortgage broker. In this follow up article we will discuss some more ways that mortgage brokers assist lenders through the minor bumps that can occur when seeking to get a new mortgage or refinancing an existing one.
One common complaint that lenders have when it comes to providing a mortgage is that the applicant has an insufficient amount of money in savings, a down payment that is too small or even income requirements below what they require. When using a mortgage broker they will seek out lenders that offer mortgages within the limitations you present. Since they work with a myriad of lenders they know ahead of time what minimum requirements each has in place therefore can weed out lenders that don’t fit within what you are able to bring to the table.
Another issue that arises that can throw a red flag is a recent change of jobs or status of employment. To certain lenders this is viewed as a lack of stability and therefore less likely to finance a mortgage for you. Mortgage brokers understand that life is unpredictable and can offer ways around such events. They can assist you in finding a lender that is able to calculate the repayment in a more favorable manner or a lender that will accept the word of your employer, in letter form, as proof that your position is secure.
Lenders are looking to offer mortgages to those of us that have regular incomes and saving patterns. In the six months before you start the process of looking for a new home or considering a refinance it is important that you begin saving regularly and obtain a position where your income is stable. If you are self employed this may be something that is difficult. Often times you have highs and lows with income and savings. A mortgage broker can help you to obtain a mortgage from a lender that specializes in small business owner mortgages or even find a lender who will accept gift deposits or parental help as collateral on your new home loan.
Does your partner have undesirable credit but you need their income to be considered to afford the home of your dreams? If this occurs a mortgage broker will look into securing a mortgage for you from a nonconforming lender. What happens is that you are offered a mortgage at a higher interest rate then what is available to lenders with a good credit history. After three years in your home, making regular payments thus hopefully improving your partners credit score you can then refinance your home loan to a lower interest rate.
Mortgage brokers tend to be able to work the system in favor of the borrower. This is especially important when you are looking to obtain a mortgage or refinance with less than perfect conditions. They are familiar with the different requirements set by lenders and will be able to work with what you can offer to secure you a mortgage that meets both your needs as well as the lenders.
Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.