The internet has brought us many quick and easy solutions to what used to be complex problems. When it comes to what may be the largest financial transaction of your life, should you use an online mortgage service, a banker, or a mortgage broker. As with so much in life, it depends.
If you mortgage is simple, it may not matter much. A mortgage broker may be able to save you a small amount on a loan application that has no red flags at all, but if you fit all of the following criteria, you may do just fine online or with a broker like this one:
- Excellent credit score
- Worked for employer same job for 2 years
- Income sufficient to qualify for the loan
- Qualifying income shows on taxes for 2 years
- 20% Down payment plus money for fees and expenses available in a liquid form, not as a loan.
- Home appraisal will easily meet the agreed upon amount
- Loan is not a jumbo
In the Los Angeles market, many mortgages are jumbo. Moreover, many home buyer’s work for themselves or have unusual income streams from the movie industry, a small business, or contractual work. Other buyers may have good, but not great, credit. There are definitely many who are not able to afford 20% down on an $800,000 house, so need to find methods for much lower down payments.
If you fit into the first group, you still may want to use a mortgage broker. A good mortgage broker will work hard to make sure you understand the process, that you get the best deal possible, and that you will recommend his or her services to others. That kind of accountability is a huge benefit in working with such an important transaction.
Here are the seven reasons you will be better off with a mortgage broker in Los Angeles:
- Most important may be the mortgage broker acting as a financial consultant. Should you do a 15-year or 30-year mortgage, fixed or adjustable, adjustable for how long? Should you lock in the interest rate? When? Use FHA or PMI? There are many such questions that the computer and the bank officer are not going to ask or have the experience to help you decide.
- Los Angeles homes are expensive, and therefore more likely to be a jumbo loan. Automated online loans commonly can’t handle jumbo loans.
- A broker works for you. The broker only gets paid if he gets you a great loan. Bank loan officers are paid by the bank, and get paid whether the loan officer finds you a loan or not.
- A mortgage broker is going to give the processing of your paperwork full attention until the deal is final. There is a lot of paper in a home sale and mortgage process. The mortgage broker will be by your side the whole way.
- If your situation is unusual in any way, the mortgage broker will likely have a bank that can handle your special circumstance. Moreover, the broker has experience with handling all types of unusual issues regarding credit scores, income verifications, appraisals, or down payments.
- When you use a mortgage broker, you are usually dealing with a local small business owner who has contacts throughout the city, and may be able to recommend service professionals you’ll need during your move.
- Once you find a good mortgage broker, you will have one more professional consultant in your life to help for years into the future. When it comes time refinance for expansion or to send Jr. off to college, or when you need a new mortgage for the move into a larger home, you’ll have a friend who’ll provide reliable guidance.
Bill Rayman has been rated one of the top ten mortgage brokers in Los Angeles by AmericaTopTen.com. If you are buying a home or income property, Bill will provide you with each and every one of the benefits outlined above. Whether you check his reviews on Linkedin.com, Yelp.com or this website, http:mortgagehelpLosAngeles, you’ll see that his customers are very enthusiastic about Bill’s handling of their mortgages. Call Bill today at 424.354.5325