Mortgage Professionals In Texas

When comparing rates it is important to be confident that the provider is searching for the best deal and not only a commission check. It is imperative to compare multiple mortgage brokers on the same day as rates can change 2 to 3 times a day and often do. Mortgage brokers receive wholesale rates. This means that when a consumer goes to a club store and buys in bulk it is cheaper to than buying each item individually. The same concept applies to mortgage brokers.Mortgage brokers have the ability to go to several banks and credit unions and figure out which bank is offering the best deal for the day. There are a variety of banks including, Countrywide, Flagstar, Taylor Bean and Whitaker, SunTrust, Chase, San Antonio Federal Credit Union and so on. To get an idea of what kind of rate to expect try visiting yahoofinance. Look at the 15-year and the 30-year rates.Mortgage brokers receive a rate, called par. Par means that the mortgage broker does not pay any money to the bank to get this rate and that the mortgage broker does not make any money from the bank. Any rate given that is higher than the par rate, earns the broker a commission, which is called yield spread premium. Any rate that is below the par rate, the mortgage broker must pay to do the loan. Usually you can count on the mortgage broker being able to beat the individual banks by at least .25 of a point.Here is a list of questions to ask your mortgage broker/loan officer:1) How do you receive payment?If they explain yield spread premium, then they are being honest. If not find someone that is willing to be honest with you. Hint – Only mortgage brokers have to disclose to you exactly what they make on a deal. Banks, credit unions and mortgage bankers do not have to disclose the yield spread.2) Do you have any testimonials?Do you have phone numbers of satisfied clients that would be willing to speak with me? It is important that you really do your homework in this area. Remember we are dealing with the biggest financial decision in your life and even a quarter of a point different in your interest rate can cost you thousands of dollars.3) Do you offer any kind of guarantee?See if they put their money where their mouth is.4) Do you have a license?Mortgage brokers and loan officers that work for mortgage brokers are required to hold a license. People that are mortgage bankers, or work for banks, credit unions do not require a license.5) How do you obtain your clients?Find out what percentage of clients are from repeat or referral business. This will give you a good idea of whom you are dealing with.Here is a money saving hint: NEVER pay an application fee.Getting answers to these questions from multiple professionals will help ensure that consumers are confident and knowledgeable before starting the loan process.

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