Brokers Do it Better: Why You Should Work with a Local Broker

Mortgage broker gets your home loan

When homebuyers set out to look for a mortgage, many of them turn to hire local mortgage brokers. This choice makes perfect sense. Everyone wants that dream home, yet most don’t know how to go about finding it.

That’s why using a professional at TwinCity Lending is always in your best interest. You will find many advantages when working with a local mortgage broker. Once you start this process, you’ll learn that trying to do it yourself isn’t always as easy as you think.

You certainly can search for properties and approach lenders on your own, but it will take a lot of time and effort. You may even find someone who offers you a seemingly low price that you think is a great deal.

However, when you dig deeper, is it a competitive interest rate? A professional will be able to find an excellent deal for you and your circumstances and is the best choice during the home loan process.

Why Should I Choose a Local Mortgage Broker?

As you navigate the home loan options out there, here are some essential things to keep in mind about a professional broker.

They Can Do Much of The Busy Work For You

One of the most significant benefits of hiring a local mortgage broker is that they handle all the hard stuff. It’s unlikely you want to make a full-time job out of tracking down the best home loan package. Making phone calls, sending emails, and following up on all of it takes a great deal of time and energy on your part.

Luckily, a professional broker wants to do precisely that. You get to concentrate on all the other important things, while they focus on getting you the best offer.

They Don’t Settle for the First Choice

Many homeowners make the mistake of jumping at the first loan that they find. Professionals can help you discover several options that will serve you well and save you money.

A local professional broker knows the mortgage market inside and out, and they know how to find that perfect deal. Having a mortgage broker in charge of your home loan takes a tremendous amount of stress out of the home-buying process.

They Have a Reliable Network

Professional local mortgage brokers know just who to contact for each step of the home loan process. They have built a trusted network of experts to be sure that you receive the best possible service.

Because of these relationships, brokers can get answers and responses quickly. This promptness ensures that your loan process moves forward smoothly so you can close on time.

They Give You Personalized Assistance

When you use the services of a local mortgage broker, the person that you select will be by your side throughout the entire process, protecting your interests. You can rely on them to be ready to answer all of your questions.

Because they specialize in home loans, mortgage brokers tend to have more in-depth knowledge of the market than banks do. They are aware of upcoming trends in the home loan financing industry that can benefit you in many significant ways.

Bank Lenders Don’t Offer The Best Options

When you deal with bank lenders for a home loan, you limit your opportunities. Banks want you to use their products only. They will not show you other choices.

Professional brokers, on the other hand, always have a wide array of products available for their clients. More options mean better deals for you.

Local brokers have the expertise to keep the home loan process flowing swiftly so that you can close as planned. Their knowledge helps you avoid unpleasant surprises.

How Are Mortgage Brokers Paid For Their Work?

Some homebuyers worry that a broker will only steer them to expensive loan products. This is not the case. Yes, mortgage brokers get paid for their work, just like anyone else. But they have an ethical and legal obligation to offer you the best possible option for your situation.

Unlike a loan officer who works directly for one lender, a broker typically does not receive a salary. While loan officers get paid whether they close your loan correctly or not, brokers get paid when they have finished the job for you. They have a vested interest in keeping the process running well. At TwinCity, we usually can get to closing in two weeks.

Typically brokers receive their compensation from the lender, and it is dependent on the amount of the loan. There are legal limits placed on how much a broker can receive from each mortgage package they write.

When you approach a professional broker, you know you will work with someone who has access to dozens of mortgage products. This accessibility means that they are the right choice to find the home loan option that best suits your situation.

Finding The Right Local Broker For You

One of the best ways to choose the perfect local mortgage broker is to get recommendations from others. Ask your friends, real estate agent, work colleagues, or neighbors who they used.

When interviewing brokers, ask what their compensation rate is so that you can make accurate comparisons. Find out what their typical turnaround time is for closing. Hint: If they normally need more than two weeks from the time they have all your paperwork, you might want to look elsewhere. Although occasional glitches do arise, a professional broker should be able to have the loan close quickly once you have all your ducks in a row.

Work with the Best

Choosing a home loan package is not like choosing a hat. One size does not fit all. That is why it is so important to choose a local mortgage broker rather than going through a specific lending institution.

You deserve to see all the sizes, all the options, and all the different possibilities. Buying a property is likely the most significant investment you will ever make. Make sure you have TwinCity Lending on your side from start to finish. Reach out today to see how our concierge experience is perfect for you.

 

Teach Your Teens How to Get a Home Loan

How

Home Loan

Having a family discussion about how to get a home loan may not rank at the top of the to-do list as a parent. But it’s a component of one of the most important talks you’ll have with your teen. 

Financial management is critical for every teenager to learn. Instilling good knowledge and skills now may help them avoid problems later. Start by sticking to the basics, and then expand their knowledge to include other topics that may apply to them.

If you’re looking for help on how to get a home loan, our team at TwinCity Lending is just a call away. Give us a call today.

Teach Your Kids About Credit First

An excellent place to start is with a solid understanding of credit. When your son or daughter reaches college and begins to use credit, you want them to make empowering decisions. Unfortunately, from 2004 through 2009, college students saw median credit card debt rise by 74 percent.

You can’t rely on schools to teach students this information, either. Only 17 states require high schools to include a course on personal finance.

Start the conversation with a definition of what credit is, why we should use it, and why we shouldn’t overuse it. Here are some points to talk about:

  • Credit is beneficial because using it wisely shows lenders that a person is a reasonable credit risk. That means they may qualify for loans in the future.
  • Talk about the burden that credit creates when we overuse it. Discuss the cost of using credit, including interest, and how that makes a simple purchase expensive.
  • Also talk about how to choose credit based on interest rates and fees, rather than the available limit.

Talk About How to Get a Home Loan and the Opportunities It Provides

Most consumers need to use a home loan to purchase a house. A great place to start this conversation is with an explanation of the down payment. Many lenders require a down payment, but a young person may have no idea what that is or how they could come up with so much cash. 

This is a great time to discuss savings vehicles that can help your children achieve this goal. You also can explain other aspects of home loans, such as insurance and interest.

What Is a Mortgage Anyway?

Be sure you also explain exactly what a mortgage is. Teach your kids that it is a lending tool for buying a home, also known as a home loan. The value of the house works as the collateral for the loan. That means if the borrower stops making payments, they can lose possession of the property. The lender owns the home until the borrower repays the loan

For older students, it can also be valuable to talk about different types of mortgages. This topic should include FHA loans and VA loans for veterans. Discuss the value of buying a home and why real estate tends to be a solid financial decision for many people. This conversation is also a great way to bring up the importance of buying versus renting a home.

Interest Rates on Home Loans

Home Loan

In your initial discussion about credit, you should be explaining how interest rates work. And it is critical to teach young people what they need to do to qualify for low interest rates later in life. They need to understand how to maintain a good credit score in the years leading up to buying a home. This conversation should include the fact that the actual amount you pay for a home is significantly higher than the sale price, due to interest amounts.

How Does Home Equity Work?

Home equity is an important topic to cover with your teens and young adults. It helps to open their eyes to how they can use credit in their favor. Home equity, which is the amount of the home’s value that is not under a mortgage, is a powerful asset. For example, some people pay off their student loans or other debts using the equity in their home. 

What makes equity so important is that it tends to build up over time. This growth builds funds that a homeowner can access for other needs. With lower interest rates and qualifications, equity can be helpful for the lifetime of owning the home. 

What Makes a Lender Offer a Home Loan to a Consumer?

Drill into your children the value and importance of good credit. Are you sensing a theme here? You can pick up an ad or browse through a real estate website with your child to see the value of various homes. That’s a big number for most teens. Why should a bank loan that enormous amount of money to a consumer to buy a home?

This conversation should include the idea of risk for the financial institution. Lenders offer loans to consumers who are a good risk. That is, they are willing to loan you the money if they feel confident you can pay it back. What makes a borrower a good risk?

  • Steady employment
  • A good credit score
  • A low debt-to-income ratio
  • Good references
  • A larger down payment

How to Pay Off Student Loans – Making the Connection

As college tuition and fees escalate, your teen may be feeling anxious about being able to afford higher education. If your child is set up for success in owning a home, they will have options for paying off student loans with their home equity.

A student loan conversation gives you the chance to talk to your teen about how to pay off any loan. They should learn that it is vital to pay more than the monthly payment and always pay on time. Learning how expensive it can be to pay off debt can help your teen see the value in keeping it in check throughout their lifetime.

You’re Not in This Process on Your Own – Let Us Help You

Whether you’re teaching your child how to get a home loan, pay down debt, or use credit, one thing is for sure. It is all critical information. And for your own lending needs, put your trust in TwinCity Lending. Contact our dedicated team to learn more about how we support you and your growing children on your financial journey.

Call TwinCity Lending now for a free mortgage review at 651-303-4236 or learn more about our services.