Colorado mortgage broker - When shopping for a new mortgage, it is always a good idea to make sure that your mortgage broker is licensed in Colorado.

This is especially important if you are shopping your rate through online brokers. Lots of brokers will be from out of state and the regulation is getting tougher for out of state brokers to place the loan within your state.

If you work with a broker in another state, there is a good chance that they are licensed to broker loans in many more states other than yours. This means that they probably aren't as familiar with the real estate market and government regulations in Colorado. More important, it means you won't be able to meet the person who is helping you get a mortgage. While this won't necessarily be a problem, most people like to be able to meet the person who will play such a large role in their financial future.

Questions to Ask Your Mortgage Broker - If you are considering applying for a mortgage, it is important to ask questions and have your questions answered. You need to feel comfortable that the decision you are making is the right one. Here are some questions you might want to ask.

Do you have any client references? One of the best ways to find out if your broker is going to be right for you is by speaking to previous clients. Were they kept informed throughout the process? Were they happy with the service? Did the broker put them in the right loan program? Were the fees reasonable? Any reputable mortgage broker would be more than happy to give you references. It means a) You're a smart borrower who wants to know all the options and you don't rush into things. and b) You're seriously considering using this broker and just want to make absolutely sure.

What loan program based on my situation will be right for me? Your mortgage broker should be able to help you decide on a mortgage. There are numerous loan programs to choose from such as Adjustable Rate Mortgages (ARM), Fixed Rate Mortgages, and Pay Option Arms. They will also be able to help you determine what the length of your loan term should be; 15 year, 30 year , 40 year, or even 50 year.

Don't be afraid to ask your mortgage broker exactly how much he is earning from your loan. Ask if you are being charged any Yield Spread Premium and what effect it has on your interest rate. Mortgage brokers are required to disclose their fees in writing in the form of a Good Faith Estimate. Honest brokers should have no problem letting you know up front the amount of their fees for your loan. Also keep in mind that the lowest fees do not mean the best service. If you shop based on fees and interest rate alone you may end up working with the biggest liar, not the best mortgage broker.

If your mortgage broker is recommending an Adjustable Rate Mortgage, an important question to ask is "What are the caps on this loan?" You will want to know the caps, or maximum adjustment, for the initial adjustment, for each adjustment period after that and for the life of the loan.

What are interest rates based on? If the broker answers either treasury bonds or the Prime, RUN do not walk away. Interest rates are based on mortgage backed security's. If your broker is watching the wrong rate then you could get a bad deal. The Prime rate has some influence on mortgage rates but does not accurately reflect what rates are doing.

Is there a prepayment penalty?
A prepayment penalty means that if you pay off your loan within a certain amount of time (by selling or refinancing) you will have to pay a penalty. Usually this penalty is several thousand dollars. Prepayment penalties are not always bad. In fact, you can usually get a lower interest rate if you have a prepayment penalty. But if you think you will be selling or refinancing your home within the next few years, it may be in your best interest to avoid having a prepayment penalty. In any case, you should at least know if you have one.

Do you have access to live, real time, mortgage bond quotes? (If a broker/lender cannot explain how Mortgage Bonds and interest rates are moving in real time and warn you in advance of a costly intra-day price change, you are talking with someone who is still reading yesterday’s newspaper, and probably not a professional with whom to entrust your home mortgage financing. Would you work with a stockbroker who is only able to grab yesterday’s paper to tell you how a stock traded yesterday, but had no idea what the movement looks like at the present time and what market conditions could cause changes in the near future? No way!)

Be smart... Ask questions… Get answers!

More than likely, this is one of the largest and most important financial transactions you will ever make. You might do this only four or five times in your entire life… but we do this every single day. It’s your home and your future. It’s our profession and our passion. We're ready to work for your best interest.

How Do I Pick A Mortgage Broker? - Picking a mortgage broker can be difficult. You get so many mail pieces and, if youre not on the Do Not Call List, so many phone call, how do you choose?
One good way is for you to choose instead of being chosen. What I mean is, this is a major transaction and you need to spend time talking to your loan officer and building a long term, trusting relationship. A loan officer who treats you in a way that you will refer your family and friends is usually a great way to go. If the trust isnt there, move on.
Further, when your loan officer pulls your credit report, the credit bureaus will sell your information to other loan officers.
Loan officers who are willing to pay for your financial information are generally less concerned about you and your situation or building a relationship. They want to swoop in, make as much commission off you as possible, then move on to their next prospect. They are not concerned about your repeat business.

A good way to pick a mortgage broker is to ask friends and family for a referral of someone that they have used and have been pleased with. Using someone that comes highly recommended is generally a very safe way to go. If this is not possible then it really just comes down to picking 2-4 mortgage brokers out on your own and going with whomever you feel the most comfortable with.

How to choose a mortgage broker - Try to ask around, find out if your friends or family have recently obtained a mortgage loan. Ask them how the transaction went: were they given what they were told they were getting? Was the loan officer friendly? Did the loan officer follow up regularly?

A good mortgage broker will take the time to find out what you are trying to accomplish in your purchase or refinance transaction. Are you trying to keep your payments as low as possible, do you want to payoff the mortgage quickly, do you want the lowest interest rate possible? These are just a few of the questions you should be asked to ensure your mortgage broker has your best interests in mind.

A good loan officer is going to be one that either comes highly recommended to you or one that you feel extremely comfortable with and can trust throughout the whole mortgage transaction. If you are confused about anything or if anything changes during your mortgage process and you are not told why make sure you ask questions and get acceptable answers. Trust is the key to a great relationship with your mortgage brokers. Please remember the trust factor works both ways and everything should be disclosed from both sides.

Make sure that your loan officer understands what affects rates. The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. If your loan officer does not understand this then RUN do not walk away from them.

The BEST way to find a Mortgage professional is by referral. Ask your friends and family who they use and would recommend. Also make sure your dealing with someone local. There is a lot more accountability when you can drive in and see someone face to face!

Discount mortgage broker - "What is a discount mortgage broker? And who pays them, me or the lender?

A "Discount" Mortgage broker, gets paid by rebates from the bank, the downside to this is it either a higher rate or a longer prepayment penalty, than using a traditional mortgage broker. Be sure to check you good faith estimate to see if your getting the best deal possible.

Why Would I Choose a Mortgage Broker - A mortgage broker can shop the banks for you- saving you time and money. A broker has many banks to choose from so you get the best rate!

Mortgage brokers work with wholesale rates rather than retail rates. They can often provide rates lower than what you may get quoted by a bank which uses retail rates.

Mortgage brokers originated over 70% of all mortgage loans originated over the past couple of years. For this reason alone, this should let you know how key the role of a good mortgage broker is.

If you are looking for a mortgage broker you can depend on, contact me at 1-888-794-0381 or .

I look forward to working with you.

A mortgage broker has the ability to have your loan approved and submitted at many different lenders. If a particular lender should cause a delay or refuse the loan the mortgage broker can have another lender begin to underwrite the loan. This will insure there are no timely or costly delays in your loan process!

Mortgage brokers have relationships with many banks which specialize in loan products for any person's situation. Some lenders have the best rates for people with great credit, some provide the best rates for the people with not so great credit, some provide the best rates for people with recent mortgage lates, etc.

A mortgage broker makes banks compete with one another for your business.

Mortgage brokers allow you to see multiple offers at once. You are given choices on which program best fits your needs. Direct lenders often have higher costs and are forced to charge you a minimum in points and fees. Brokers give you the flexibility to negotiate those fees.

A mortgage broker generally have established business relationships with multiple banks, and therefore has many more loan programs available, whereas a bank loan officer can only sell mortgage products offered by the bank. While a mortgage broker has the ability to shop different lending institutions to find loan programs tailored made for homebuyers in almost any financial situation, a bank based loan officer can only offer the bank's product, even if that loan product may not be the best for the home buyer. For example, a neighborhood bank may have a "Stated Income" program for loan applicants with credit scores of 700 and above and a "No-Doc" program for credit scores of below 700 at a higher interest rate. Since a borrower with a credit score of 685 does not qualify for the "Stated-Income" program, the bank loan officer would put him in a "No-Doc" loan with a higher interest rate. On the other hand, an experienced mortgage broker can often find another lender offering a lower interest rate "Stated Income" program for the same borrower.

A mortgage broker can quickly determine the best loan program for you, then search through several lenders who specialize in that program to find the best rate and terms for you.
A bank, on the other hand, has fewer programs to choose from and must sometimes try to fit your unique situation into one of their programs, whether it is a perfect fit or not.

In addition a good mortgage broker will look at more than just obtaining a loan for you. They will look at your whole financial picture to make sure the loan program fits your short term and long term goals.

Why Should I Pay for a Mortgage Broker? - Wouldnt I save money if I went straight to the bank myself instead of paying a mortgage broker to find the best deal for me?

As opposed to loan officers from the neighborhood banks, almost all mortgage brokers are compensated only if the home buyer is successful at the purchase. This gives brokers an incentive to take an active role to solve any problems that may arise during the transaction.

In most cases banks are going to have 2 separate divisions when it comes to mortgages, retail and wholesale. In many cases they actually compete against one another to see which can generate the most business. Since they are targeting different audiences they have different product lines, rates and fees. Since the retail branches are targeting the general public they are given typical retail rates. The wholesale division has access to better pricing that they offer to brokers since they are competing with other banks, and lenders who are also offering wholesale pricing.

It's pretty common that your mortgage broker can give you a better rate than if you went with the lender directly. Mostly, it comes down to how much the broker is trying to charge you. As a general rule, a retail bank will charge you 1.75-2.25 points. (Either through Yield Spread Premium or paying the points up front) If your broker is willing to take less than that, the broker will generall beat the lender on the lenders own programs.

Do you have hard to prove income, bad credit, or little or no down payment? Many people choose to work with a mortgage broker because a broker has access to lenders with loan programs tailored to the customer's needs. Mortgage brokers can also offer several loan options, allowing you to choose the mortgage that is right for you.

Why use a mortgage broker - There are many reasons that you should use a mortgage broker and many advantages to using a mortgage broker. One reason to use a mortgage broker is because a mortgage broker has access to all kinds of different home loan programs.

A mortgage broker's job is to assess your situation and then shop your loan thru 100 different lenders in order to find you the most beneficial loan for your situation. We have access to over 1200 different loan programs and are able to obtain wholesale rates which can save you $100,000 plus over the life of your loan.

Here's something to keep in mind. As a mortgage broker, I'm completely independent. I'm not employed by or work for any bank or lending institution. I work for my clients. The bank is going to look out for its best interests, isn't it nice to have someone working for you, the borrower, and looking out for your best interests?

Many mortgage brokers have expertise in certain types of loans, such a construction loans, poor credit loans, or reverse mortgages. If your situation has special obstacles a mortgage broker may be the best answer.

A mortgage broker is an individual or firm that acts as an independent agent for both the borrower and the lender of a mortgage loan.



Mortgage brokers are the middle man between you and the lending institution, which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual private investor. A mortgage broker will analyze your financial situation to determine which lender is the best fit for your loan needs.

Mortgage brokers have the advantage of being able to access dozens of rates quickly for similar loan programs from different lenders. Although banks have similar programs, their rates can vary widely. Mortgage brokers, through experience and through searching rates, can find which lenders are offering the lowest rates at any given moment.

Mortgage brokers have more options than banks. For example. if you have poor credit and need a subprime loan, your bank may have access to one option. A mortgage broker would have access to dozens.
Other situations where mortgage brokers would be able to provide you with more options than a bank include manufactured homes, rural properties, commercial properties, first time home buyers, and special credit situations, such as bankruptcies and foreclosures.

Working with a mortgage broker has many benefits. Just to name a few: we discuss and explain the programs that are available to you in your particular situation. We inform you in writing that you loan interest rate is locked and wont change. We explain all the documents in plain English so you understand what you are signing. We explain all the costs involved in closing the loan. We give you a timeline of the loan process. We provide you with a good faith estimate. We also coordinate the final closing of your loan.

Mortgage brokers have access to wholesale rates, where as your local bank only has access to the rates that they offer. This can save you money on your monthly payment, especially if you have a unique situation that your bank will not be able to handle.

Mortgage brokers are also familiar with the area in which they operate. Using someone local has big advantages. With so much mortgage information online, it's hard to know who to choose. If something goes wrong along the way with your loan, it is easier to deal with if you have a loan officer you can meet with face to face rather than a website or 800 number.

A mortgage broker is also able to move your file to another lender should a better deal appear. Or if there is a problem with your file in underwrting your mortgage broker can switch lenders within minutes and ensure you meet your close date. Local banks cannot do this.