7 Reasons To Choose A Mortgage Broker over On-Line Lenders - part 2
by Jay Popejoy
5. No Cost Closings and Add-On Fees: On-Line/Television mortgage lenders sometimes promise a no fee loan. The key word is fee. Fee represents loan origination fees (often referred to as points, but this is not correct) but may not disclose other charges associated with the loan. Costs to you as the borrower can be service charges, mailings/postage, closing locations, premiums, insurance, appraisals, title costs, etc. The careful consumer will often realize that television and on-line lending may not be the applicable choice. A local professional, such as Breakwater Mortgage, can offer alternatives and trim add on costs.
6. Credit Issues: Borrowers with questionable credit may be eliminated by on-line lenders or charged a much higher interest rate than the rate advertised, which is usually provided to the best credit applicants. Breakwater Mortgage Corp.'s staff provides services that support consumers with a wide variety of credit scores and financial challenges. Breakwater Mortgage's mortgage specialists/loan officers/support staff/processors all work together to provide our client the ideal experience to purchase or refinance a property. The residential properties can be primary residences, investment properties, or a wonderful vacation home. Breakwater Mortgage's team values our clients, realtors and support associates. Referrals, returning clients, and follow-on refinance business provides a long-term relationship which improves our success level. On-Line lenders usually do not have the same connection within the local community and typically do not share the same level of repeat business. At Breakwater Mortgage (Virginia Beach, Williamsburg) we strive for repeat and new business. To show the level of desire to help the local community and potential home buyers, we provide a free service that enables clients with questionable credit to potentially qualify for a home through a 'Get Mortgage Ready Program,' designed specifically for those with credit issues.
6. First Time Homebuyers: Breakwater Mortgage in Virginia Beach has special programs with lenders that have excellent competitive rates that cater to first time homebuyers. On-Line lenders may not offer the variety of mortgage lending programs that mortgage brokers provide. Many brokers may have in excess of 60 lenders to support the client to provide the best product through each lender's specialized products.
7. Primary Mortgage Insurance (PMI) and Other Insurances: Bottom line up front: PMI is to support the lending institution and NOT the homeowner! If you have a single loan that equals 80 percent or greater of the home value, the likelihood of the lender requiring PMI (to protect the lender) is great but not always required (check with your broker, they have multiple programs that the on-line lender may not!!). Many consumers may perceive that PMI is for their benefit and often find out after a life issue that prevents the consumer from meeting the financial home obligations that PMI is for the lenders benefit! Other insurances that are available to protect the consumer include credit life and mortgage life insurance. Other insurance options are available and consumers should check with a local insurance representative to provide the best options available.
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