We would suggest you not to buy a home without proper guidance, and not having someone to help you with the process in terms of figuring out, especially with how much mortgage you can afford. There will be the inevitable aspect of having to deal with contracts, fees, charges, etc., should you decide to do this all on your own. Sure, you would save a lot but is the headache worth it?
Many of us think that having to do it alone is better; some of us say that doing it cheaper increases the chances of spending more than how much you should. Instead, leave it to professionals like mortgage professionals!
A mortgage professional is someone who helps you get a loan to buy a house. They know all about the different types of loans and can guide you through the steps to get one. Think of them as your helper in the home-buying journey.
They work with banks or other lenders and help match you with the best loan for your needs. Some are called mortgage brokers, and they shop around at different places to find good deals. Others might work at just one bank and help you with the loans that bank offers. Either way, their job is to make things easier for you and help you understand what you're signing up for.
Getting a home loan can be complicated. A mortgage professional can:
When you're buying a home, there’s a lot of paperwork to deal with, like contracts, loan applications, and other things you don’t want to stress yourself with. A mortgage professional helps you fill it all out correctly and ensures you don’t miss any important details. They also know which documents are needed, so you won’t waste time searching for things and the basics would be identification and proof of income.
Here are some of the documents needed by a mortgage broker:
Another important thing a mortgage professional can do is help you figure out how much house you can afford. Do not be too excited when choosing a home because if you cannot keep your emotions in check, you might get yourself in trouble especially if the broker you have only wants your money. The right one would tell you which is the best for your budget.
Plus, mortgage professionals have a network of contacts of a ton of lenders, meaning they can easily look around to find you the best interest rates and loan terms available.
In short, they make the process smoother and less stressful.
• Mortgage Brokers: They work WITH many lenders to find you the best loan.
• Mortgage Lenders: They give you the money directly for your loan.
• Loan Officers: They work FOR lenders and help you apply for a loan.
Now take note: mortgage brokers work with lenders, while loan officers work for lenders.
Mortgage Brokers are like matchmakers between you and the lender. They don’t give you the loan themselves, but they look and ask around to find the best deals for you by working with multiple lenders. Because of their network, they have access to different loan options, they can help you find a mortgage that fits your needs and budget. If you're not sure where to start, a mortgage broker can make the process easier by narrowing down the options.
Mortgage Lenders, on the other hand, are the ones who actually provide the money for your loan. They can be a bank, credit union, or another financial institution. When you work with a mortgage lender, you’ll go through the entire loan process with them, from application to approval. Mortgage lenders usually offer loans directly from their own pool of funds, which can make the process a little more straightforward—but they may only have a limited number of options compared to brokers.
Loan Officers are employees of a mortgage lender, and they work with you directly to help you apply for a loan. They’ll explain the different loan options available through their employer and guide you through the application process. If you decide to go with a lender instead of a broker, a loan officer will be your main point of contact.
Each of these professionals has their own way of helping you, and all aim to get you the best loan for your new home. Understanding their roles can make it easier to decide which one is right for you.
Finding the right person is important. Here's how:
If you're in Iowa, here are some local mortgage professionals you might consider:
Take your time to find someone you trust and feel comfortable with.
When you meet with a mortgage professional, ask these questions:
These questions will help you understand what to expect and make an informed decision.
When working with a mortgage professional, be aware of these warning signs:
Be cautious if you notice:
• Pressure to sign quickly.
• Unclear or hidden fees.
• Lack of communication or delayed responses.
• Promises that seem too good to be true.
Trust your instincts! If something feels off, consider looking elsewhere!
Do not be afraid or too embarrassed to walk away or say something when something feels off because it is our instincts telling us what we must do. So if one of these signs is present, walk away! There is nothing to be ashamed of, in the end, it is your self interest that must be on top of all things.
Finding the right mortgage professional is a key step in buying a home. Take your time, do your research, and ask questions. With the right help, you'll be on your way to owning your dream home.
What's the difference between a mortgage broker and a lender?
A broker finds loans while a lender gives you the loan.
How do I know if a mortgage professional is trustworthy?
These days, you can review their Google My Business Page or you can search them through their socials.
Can I negotiate fees with a mortgage professional?
Yes.
What is a pre-approval?
A lender tells you how much you can borrow.
How long does the mortgage process take?
30-45 days.