Loan Origination Training, Loan Originator, Become A Loan Originator, mortgage broker training.#Mortgage #broker #training

Loan Originators and Loan Origination Training : How To Become A Loan Originator

Becoming a mortgage loan originator just might be the best decision you ever make. Loan originator is one of the last professions remaining that you can enter with little out of your pocket and unlimited income potential.

This website can help you by showing all the things you have to know to be a loan originator . In the mortgage business a mortgage loan originator is the person who gets the loan. You can work as a broker or a loan officer. But to be successful you must get the proper loan origination training . On,our website, we refer to loan origination training as mortgage broker training. The words are interchangeable. Our main loan origination training manual is a useful tool that will be a permanent guide through the loan approval process: from what you need to start you career to how you can have most of your loans approved.

Take a look at our website and look at the different subjects this manual covers. There is also a short quiz to see how much you know about being a loan originator already. After taking the quiz, you will have a much better idea of how well your loan origination training up to this point has been.

Become A Loan Originator

To help people become mortgage loan originators we have written a book titled So You Want To Be A Mortgage Broker. You can get more info about the book at Like I said earlier a mortgage loan originator is a mortgage broker in most parts of the country. The terms mortgage loan originator, mortgage broker, and loan officer are synonymous. We could have called it So You Want To Become A Loan Originator and it would mean the same thing.

Step one to becoming a mortgage loan originator is to find out if you need a license. Most states do require them. There is a complete listing in the book mentioned above.

Step two is to get your license and find a job. That shouldn’t be too hard because you will be working on commission and if you do not produce you do not eat. So finding a company to work for will not be very difficult.

Step three is to get proper loan origination training.

Loan Origination Training

As a loan officer there are numerous things you will need to know. A short list is:

– How to fill out a 1003 loan application

– How to lock the interest rate for a loan

– How to read a rate sheet

– How to price a loan so you make money

– What disclosures need to be given to the borrowers

– How to read and analysis a credit report

– How to submit a file to the lender

All these topics should be part of your loan origination training . The sad thing is that most mortgage companies do not offer very good training to their originators. So you might be forced to get your own training. In that case, we have an excellent loan originator training manual that will teach you everything you need to know and then some.

Getting your training is not a hard process. But it will take a little time. The better trained you are, the more confidence you will have, and thus the more loans you will close.

Once you become a loan originator, you will experience the freedom I live everyday: No boss, you choose the hours, you choose the days, you can work from home, and have unlimited income.

But it starts with So You Want To Be A Mortgage Broker. Find out about the business and make sure this is something you want to do. Get info about your license as well. Then get your loan originator training, either from your own company or from ours.

After you are done training, it is time to start marketing. There are many great mortgage marketing programs available that can help you get clients. has several you should check out.

Mortgage broker training

Mortgage broker training

What Is a Mortgage Broker, The Truth About, mortgage broker.#Mortgage #broker

What Is a Mortgage Broker?

Unless you live under a rock (like I do), you ve probably heard the term mortgage broker get thrown around. You may have heard good things, and you may have heard bad things.

Regardless, a mortgage broker is essentially a middleman between the borrower/homeowner and the bank or mortgage lender. They work directly with both the consumer and the bank to help borrowers qualify for a mortgage, whether it be a purchase mortgage or a refinance.

Borrower/Homeowner Mortgage Broker Bank/Mortgage Lender

As you can see from my rather rudimentary, yet fairly time consuming diagram above, the mortgage broker acts as a liaison between two important entities. The borrower/homeowner end is the retail side, while the bank/lender end is the wholesale side.

So how does this whole mortgage broker thing work?

Well, once a borrower makes contact with a mortgage broker and agrees to work with him or her, the broker will gather important information. Income, asset, and employment documentation, along with a credit report, are necessary to assess the borrower s ability to obtain financing. A retail bank would collect the same documentation.

Once the mortgage broker has all the important details, they can determine what will work best for the borrower. This may include setting an appropriate loan amount, loan-to-value, and determining which loan type would be ideal for the borrower.

Of course, the borrower can decide on all these things on their own if they so choose. The broker is just there to help (and make their commission).

When all the details are ironed out, the broker will submit the loan to a lender they work with to gain approval. During the loan process, the broker will communicate with both the bank and the borrower to ensure everything runs smoothly.

If you use a broker, you won t actually work directly with the bank. All correspondence will funnel through the broker and their staff.

Mortgage brokers make money by charging a loan origination fee and/or broker fees upfront (they used to get paid via yield spread premium).

They can also offer no cost loans by utilizing a lender credit, which will effectively raise the borrower s interest rate, but eliminate out-of-pocket costs.

Borrowers can choose if they want to pay these costs at closing or via a higher interest rate. Ask your broker to clearly discuss both options before proceeding.

What they charge can vary greatly, so make sure you do your homework before agreeing to work with a mortgage broker. And ask what they charge before you apply!

Mortgage Brokers Can Shop Your Rate for You

After all the paperwork is taken care of, the mortgage broker will work on behalf of the borrower to find the best (lowest) mortgage rates available. This is the key advantage of a mortgage broker. They have the ability to shop with numerous banks and lenders simultaneously to find the lowest rate and/or the best loan program.

If you use a traditional retail bank, the loan officer can only offer loan programs and corresponding mortgage rates from a single bank. Clearly this would lessen your chances of seeing all that is out there. And who wants to apply more than once for a mortgage?

Keep in mind that the number of banks/lenders a mortgage broker has access to will vary, as brokers must be approved to work with each individually. In other words, one mortgage broker may have access to Wells Fargo s wholesale mortgage rates, while another may not. The more options the better. So ask the broker for multiple quotes from as many lenders as possible.

Mortgage Brokers Are Your Loan Guide

Mortgage brokers work with borrowers throughout the entire loan process until the deal is closed. Overall, they re probably a lot more available than loan officers at retail banks, since they work with fewer borrowers on a more personal level.

This is another big advantage over a retail bank. If you go with one of the big banks, you may spend most of your time on hold waiting to get in touch with a representative. Additionally, if your loan is declined, that s the end of the line. With a mortgage broker, they d simply apply at another bank.

Mortgage brokers were largely blamed for the mortgage crisis because they originated loans on behalf of numerous banks and weren t paid based on loan performance.

Studies have shown that these originate-to-distribute loans have performed worse than loans funded via traditional channels. But the big banks were the ones that created the loan programs and made them available, so ultimately the blame lies with them.

Regardless, you shouldn t get yourself caught up in the blame game. It is recommended that you contact both retail banks and mortgage brokers to ensure you adequately shop your mortgage. Most borrowers only obtain a single mortgage quote, which certainly isn t doing your due diligence.

Mortgage Broker FAQ

Are mortgage brokers free?

Like all other loan originators, brokers charge fees for their services, and their fees may vary widely. Additionally, they may get compensated from the lenders they connect you with, or ask that you pay broker fees out of your own pocket. If they aren t charging you anything directly, they re just getting paid by the lender, meaning you ll wind up with a higher rate. Be sure to explore all options to get the best combination of rate and fees.

Do mortgage brokers cost more?

No, as mentioned mortgage brokers can offer competitive rates that meet or beat those of retail banks, so they should be considered alongside banks when searching for financing. They have the ability to shop numerous lenders at once so they can find the best pricing based on your needs.

Do mortgage brokers need to be licensed?

While licensing requirements do vary by states, mortgage brokers must be licensed and complete a criminal background check including fingerprinting. Credit checks and minimum experience are also often required. Additionally, brokers must usually complete pre-license education and some must take out a bond or meet certain net worth requirements.

Are mortgage brokers regulated?

Yes, mortgage brokers are regulated on both the federal and state level, and must comply with a large number of rules to conduct business. Additionally, consumers are able to look up broker records via the NMLS to ensure they are authorized to conduct business in their state, and to see if any actions have been taken against them in the past.

Do mortgage brokers service loans?

Typically not. Mortgage brokers work with banks and lenders that eventually fund your loan. These banks will either keep the loan on their books or sell it off to another company that may service the loan. Put simply, there s a good chance your loan servicer may change once or twice after your loan closes.

Are mortgage brokers going out of business?

While mortgage brokers account for a much smaller share of total loan volume these days, they still hold a fairly substantial slice of the pie.

And despite the ups and downs that come with real estate, they will most likely continue to play an active role in the mortgage market because they provide a unique service that large banks and credit unions can t imitate.

So while their numbers may fluctuate from time to time, their services should always be available in one way or another.

Mortgage Broker Brisbane Blue Fox Finance, mortgage broker.#Mortgage #broker

Finance & Mortgage Broker Brisbane

Mortgage broker

Mortgage broker

Mortgage broker

Mortgage broker

  • Finance Mortgage Broker Brisbane.
  • $0 Fee for arranging your home loan.
  • No-cost pre-approvals available.
  • House phone appointments available.
  • After-hour appointments welcome.
  • Access to 25 different lenders.

Our Qualifications

Accredited Finance Mortgage Broker Brisbane

Member of the FBAA

Member of the Credit and Investments Ombudsman

Mortgage broker

Access to 25 different lenders

Professional Indemnity Insurance of $20,000,000

Proud representative of AFG

Mortgage broker

Our Lenders:

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A few words from our clients.

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Mortgage broker

Good work guys keep it up and will recommend any day of the week Clinton.

Mortgage broker

To check out more of our reviews, or to leave one of your own, visit our Google+ business page

Frequently Asked Questions

Why use a Mortgage Broker?

A Mortgage Broker Brisbane can save you time, money, and a lot of stress when it comes to getting a home loan. We work after hours; at no fee to you; and we work for you, not the banks. For a more detailed explanation of why you should use a Mortgage Broker Brisbane instead of going directly to the bank, please read this article.

What do I need to apply for a home loan?

Every situation is different, but all most people will need a 5% deposit and a regular source of income. The bank will look at your assets, liabilities, income, expenses, and general lifestyle when assessing your home loan application. If you are self-employed you should expect to be asked for 12 24 months of financial documents.

How much do Home Loans cost?

Home loans have no upfront costs in many cases; however, they can have upfront fees of up to $600 or more depending on what home loan product you are looking for. Your home loan broker will walk you through this.

How much does a Mortgage Broker charge?

While some Mortgage Brokers do charge a fee for their service, most do not. We at Blue Fox Finance do not charge the customer anything for arranging their home loan, we receive our income directly from the banks.

What equipment finance do you do?

Our finance brokers can help you with: car loans, caravans, camper vans, motorcycles, solar panels, bulldozers, cranes, forklifts, tractors, earth moving equipment, other plant equipment, computers, medical and dental equipment, fit-outs, furniture and other fittings.

Are you the Mortgage Broker Brisbane needs?

No. We are the Mortgage Broker Brisbane deserves!

How do I know a Mortgage Broker is working for me, not the best commission?

While some Mortgage Brokers may not always have the customer s best interests at heart, that s certainly not common practice. We will always fully disclose all commissions we receive for arranging your home loan; and if there is any doubt, please read this article to see what commissions the different banks pay us.

How long does a car loan take to settle?

Most car loans will settle within 24 hours. In the majority of cases our finance brokers work off settling car loans on the same day for loan applications completed and submitted by 1.00pm.

How long does it take to get a Home Loan?

This depends. If you are looking to get your home loan in a hurry, we have lenders that can approve home loans in only 24 hours. If you are looking for the cheapest interest rate, it may take 10 20 business days.

If you have any questions, or would like to make an appointment to speak to a Mortgage Broker Brisbane, please contact us

Helpful Information

The information provided in this website is for general education purposes only and does not constitute specialist advice. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy.

*Note: the home loan with the lowest current interest rate is not necessarily the most suitable for your circumstances, you may not qualify for that particular product, and not all products are available in all states and territories.

#The comparison rate provided is based on a loan amount of $150,000 and a term of 25 years. Warning: This Comparison Rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.

Mortgage Broker Training Courses – Diploma – Cert IV, mortgage broker fees.#Mortgage #broker #fees

Mortgage Broker Training – Become an MFAA accredited Mortgage Broker

  • Mortgage broker fees
  • Mortgage broker fees
  • Mortgage broker fees

Mortgage broker fees

Mortgage and Finance Broker Training Courses

Specifically designed to get you started and help you advance within the Mortgage and Finance Industry.

Mortgage broker fees Mortgage broker fees

Mortgage broker fees Mortgage broker fees

How do you become a mortgage or finance broker? Start or expand your career in the finance and mortgage industry or simply improve your skills as a broker?

Mortgage Broker Training provides courses to get you started as an Australian finance or mortgage broker . The main industry requirement to become a mortgage broker or credit adviser is a FNS40815 Certificate IV in Finance and Mortgage Broking. Even experienced brokers are now required to have the Certificate IV in Finance and Mortgage Broking under ASIC requirements for licencing, MFAA guidelines , FBAA guidelines and to become accredited with lenders.

The Certificate IV in Finance and Mortgage Broking enables you to become accredited with lenders and the industry associations – the Mortgage and Finance Association of Australia, MFAA and the Finance Brokers Association of Australia – FBAA. The Certificate IV will also meet the educational standard of the National Consumer Credit Protection Act – NCCP (Federal licencing requirements).

The MFAA also require current members to hold a Diploma in Financial Services (Mortgage Management) and new entrants to either currently hold the Diploma or be enrolled to complete the Diploma.

The courses offered are all nationally recognised within the Australian Mortgage Finance Industry by Broker Groups, Industry Associations and Australian Lending Institutions.

This is the starting point for your career as an Accredited Mortgage Broker or Credit Advisor.

If you are wanting to enter the industry, some Broker Groups and franchises will offer training courses, however you need to commit to them prior to the training, often paying large franchise fees before you can join or really understand the industry. Learning about the industry and achieving industry and government recognised qualifications gives you the knowledge prior to committing to a group or paying franchise fees. By completing one of these courses you obtain the educational requirements and knowledge of the mortgage industry first. Then with an understanding of the industry you can choose where you want to start in the mortgage industry. – Whether with a franchise, a mortgage group or independently.

So how do you become a mortgage broker?

The industry associations requirements to become a broker include completion of a Certificate IV in Finance and Mortgage Broking – (FNS40815) and under MFAA requirements, from the 31st of January 2013, all current members will require the Diploma to stay compliant with guidelines – New members require the certificate IV and to obtain the diploma within a year of joining. The National Consumer Credit Protection Act RG206 implemented during 2010 also has the Certificate IV as a key educational requirement.

On completion of this course, not only will you gain the required educational standard but gain meaningful hands on experience. All our trainers have had years of real experience in the mortgage industry. You also have the ability to apply to the MFAA as an Accredited Mortgage Broker (AMC) or FBAA provided you meet their other requirements.

Courses are available face to face monthly in Sydney, Melbourne and Brisbane, and other capitals and regional centres or by distance learning or electronic media. (See course Schedule for details)

On completion of the course we can even put you in touch with groups to get you started.

This course could also be the starting point of a range of career opportunities and jobs including:

Commercial Loans, Commercial Mortgage, commercial mortgage broker.#Commercial #mortgage #broker

commercial mortgage broker

Commercial mortgage broker

Commercial mortgage broker

Commercial Loan Portal

to 750 Commercial Lenders

Commercial loans and commercial mortgage rates can be found inside this portal. This commercial mortgage portal allows you to apply to 750 commercial real estate lenders in just four minutes. You simply input your commercial loan request. The C-Loans System will then screen out all of the unsuitable commercial lenders and provide you with a list of 30 (or so) banks which are perfect for your particular commercial real estate loan request. You can then call these banks, life companies, conduits, REIT’s or hard money lenders directly or submit your commercial loan request electronically, six commercial lenders at a time. And C-Loans is free!

Ranked the most popular commercial mortgage portal by Commercial mortgage broker

Commercial mortgage broker

Commercial Loan Portal

to 750 Commercial Lenders

Commercial loans and commercial mortgage rates can be found inside this portal. This commercial mortgage portal allows you to apply to 750 commercial real estate lenders in just four minutes. You simply input your commercial loan request. The C-Loans System will then screen out all of the unsuitable commercial lenders and provide you with a list of 30 (or so) banks which are perfect for your particular commercial real estate loan request. You can then call these banks, life companies, conduits, REIT’s or hard money lenders directly or submit your commercial loan request electronically, six commercial lenders at a time. And C-Loans is free!

Commercial mortgage brokerC-Loans Thanks: Alicia Gandy of Blackburne Sons Realty Capital Corporation

For Closing a $650,000 First Mortgage on a Strip Center in Tulsa, Oklahoma (More Info and Mini-App)

Commercial mortgage broker

Commercial Loan Portal

to 750 Commercial Lenders

Commercial loans and commercial mortgage rates can be found inside this portal. This commercial mortgage portal allows you to apply to 750 commercial real estate lenders in just four minutes. You simply input your commercial loan request. The C-Loans System will then screen out all of the unsuitable commercial lenders and provide you with a list of 30 (or so) banks which are perfect for your particular commercial real estate loan request. You can then call these banks, life companies, conduits, REIT’s or hard money lenders directly or submit your commercial loan request electronically, six commercial lenders at a time. And C-Loans is free!

Commercial mortgage brokerC-Loans Thanks: Vito Piche’ of

Red Star Commercial Funding

For closing a $250,000 First Mortgage

on a commercial building in Atlantic Beach, NY

Louisville Mortgage Lenders, Kentucky Mortgage Brokers, mortgage broker.#Mortgage #broker

Louisville Mortgage Lenders 502-405-8834

Louisville Mortgage Lenders is a full service Mortgage Broker.

Mortgage broker

We pride ourselves, and are structured on providing a more stream lined personalized mortgage service for our clients. In effect, the process is able to move forward much more smoothly than you’d get with a big clearing house type of brokerage firm where a client is more likely to be seen as another number in an overgrown machine.

Getting a loan on a new home, or refinancing an existing home loan can be an intimidating process, even for an individual that’s been through it before.

We have the experience and know how to to guide you through the process with as little dificulty as possible, while still getting the best rates and terms available.

Great Interest Rates Mean Better Home Loans

Getting our clients the greatest rates available with the least amount of hassle on their mortgage loan is our entire focus.

The mortgage industry and associated rules and regulations for Kentucky change yearly and we keep ourselves current so that you can have the confidence that you’re being represented by the best Brokers possible. Visit our Jumbo Loans area to discover information about non conforming home loans.

We’ve built our entire company around this philosophy and it’s served us well. If you’re in the process of buying or refinancing a home, you should call us today. If you don’t get started you’ll never get there. And who better to partner with than the best Louisville mortgage lenders possible.

How Does The Mortgage Lending Process Work?

It’s not complicated in the least and it starts with you filling out our contact form or calling us on the phone. We will discuss wether you’re a first time home buyer, or if you’re curious about refinancing your home and how it could potentially benefit you buy lowering your monthly payments or shortening the length of your original mortgage loan. After that we can present different loan options and get the information in place to work up some real world rate quotes so that you can make an informed decision on how to move forward.

We’re here to help. And more than anything we’re about relationship building with our clients. We never charge for a consultation so if you’re only curious and are online reading about all of the things associated with getting a home loan, or refinancing an existing home, sometimes it can be a little confusing. If you just need to ask some questions we’re here to provide the accurate answers. If you’re looking for the best local Louisville mortgage lenders call us today at 502-405-8834.

Where to Get Louisville Home Insurance?

Having quality insurance on your home and belongings is a wise investment. Tragically disasters do happen and can be financially devastating if a home owner isn’t adequatly prepared with quality home insurance. Louisville KY has an abundance of qualified insurance agencies that can help any homeowner aquire a policy to suit their needs. We reccomend calling Family Select Insurance located at 6409 Dutchmans Pkwy in Louisville KY, phone 502-744-7283 to speak to a representative about a policy that will suit your needs and budget.

Mortgage Loans for Buying Used Cars?

Typically we do not do mortgage loans for the purpose of purchasing cars. We can however reccomend that you contact Louisville Buy Here Pay Here Car Guys to secure financing for a used car or truck purchase. They’re local to the area and can assist you with on the lot financing with buy here pay here loans, Sub Prime bank loans, and even Prime Bank lending on cars, trucks, SUV’s and mini vans. If you need to you can call them directly at 502-405-8834

Mortgage Brokers, Find Broker Details – Contact Info, mortgage broker fees.#Mortgage #broker #fees

Compare Mortgage Brokers

Mortgage broker fees

Finding the perfect house may be difficult, but choosing the right mortgage loan can prove to be even more challenging, especially for first-time borrowers. While the mortgage process may seem daunting, finding a knowledgeable and reliable mortgage broker can conveniently simplify and expedite the process. A mortgage broker will help you navigate the mortgage system and will match your financial needs with a suitable mortgage from a selection of lenders. The key is choosing the right broker. You will need to have a basic understanding of the mortgage transaction process in order to compare various brokers across multiple criteria. It is also important to note that this comparison only includes mortgage brokers who are registered to originate loans in California.

People often confuse mortgage brokers with lenders. Essentially, a mortgage broker is a loan provider who serves as a liaison between you and mortgage lenders. A mortgage broker offers the loan products of various lenders, while a mortgage lender provides the actual loan money. Mortgage brokers do not loan money; instead, they work with you to help you find appropriately-matched mortgage loans. Typically, a mortgage broker will learn about your particular financial situation and then shop around for the best loan deal from lenders offering the particular type of loan you need. Brokers usually work with numerous lenders, attempting to match the right lender with your profile. Since they have so many lenders from which to choose, brokers are more likely to find loans for borrowers with special needs, such as bad credit, than individual lenders.

Mortgage brokers will accept your application and seek to lock in rates and terms with lenders. They also provide required state and federal disclosures. Additionally, brokers will gather all the necessary documents, including credit reports, employment verification statements, asset disclosures, and property appraisals. Once an application file is deemed complete, the mortgage broker submits it to the appropriate lender, who then handles loan approval and disbursement. A broker earns commission in exchange for bringing borrowers and lenders together. You usually pay the broker’s commission indirectly, in the form of closing costs or additional loan points. The mortgage broker will receive payment when the loan is closed.

While the process of obtaining a mortgage loan is complex, the basics of the transaction can be understood by even the most inexperienced borrower. And having a basic understanding of the mortgage process will prove to be beneficial when you meet with a prospective mortgage broker – it will go a long way as you discuss and compare your loan options with him or her. Here are the fundamental concepts of obtaining a mortgage loan that you should compare:

  • Loan Term : All mortgage loans have a term of repayment, which is the number of years that your payments will last. Your mortgage term can have a significant impact on your interest rates and monthly mortgage payments, making it a critical element to take into consideration. The most common options are the 15-year and 30-year mortgage terms; however, some loans may have terms for 10, 20, and even 50 years. The choice between a short- or long-term mortgage involves a simple trade off. Basically, the longer you borrow the money for, the more interest you’ll pay. The other side of this is that the longer you take to pay back the loan, the less you have to pay each month. You will have to determine which loan term is best according to your particular financial needs.
  • Interest Rate : The interest rate is the amount it will cost you to borrow the money, making it one of the most important factors in your mortgage. Interest is denoted as a percentage of the loan amount. You can choose to have a fixed-rate or adjustable-rate mortgage loan. With a fixed-rate mortgage, you won’t have to worry about the interest rate changing throughout the life of the loan, which means your monthly mortgage payment will never rise. While this offers some relief, you can end up paying a bit of a price for it, depending on the current mortgage rates. An adjustable-rate mortgage, on the other hand, carries more of a risk because your monthly mortgage payment will change according to market fluctuations. Yet this type of mortgage is very attractive to borrowers because the initial payments are significantly lower than those of a conventional fixed-rate mortgage.
  • Fees and Points : Aside from the interest rate, you also have to be aware of all the fees that may be incurred as a result of obtaining a mortgage. This can include a wide array of charges, ranging from loan application fees and origination fees to credit check fees and appraisal fees. It is also important to know the number of points, or discount points, on your loan. A point is a form of pre-paid interest that reduces your overall interest rate and therefore your monthly mortgage payment. One point is equal to 1% of the loan amount, so one point on a $150,000 loan would be $1,500, and two points on a $300,000 loan would be $6,000. Essentially, the more points you pay upfront, the lower your rate of interest and vice versa.

Now that you have a better understanding of the basic mortgage transactions, you are more prepared to compare mortgage brokers and ultimately find the best one for you. Here are the most important criteria to consider as you weigh your options:

  • Loan Type : You should first determine which loan type is best for your financial needs. Not all brokers handle all types of loans, so it is important to narrow your options to just those brokers that specialize in your preferred mortgage loan. There are various types of mortgage loans, but the two most popular options are fixed-rate mortgages (FRMs) and adjustable-rate mortgages (ARMs). In a FRM, the interest rate and your monthly mortgage payment will remain the same throughout the entire life of the loan. The term is typically for 10, 15, 20, or 30 years. The biggest advantage of having a fixed-rate mortgage is knowing that your interest rate and monthly payments will never increase. You can also budget more easily because the monthly payments remain the same throughout the entire length of the loan. However, the interest rates of fixed-rate mortgages are higher than the interest rates on other types of loans, so the monthly payments are usually higher. With an ARM, the interest rate and monthly mortgage payment will only remain the same for a set period of time, after which they will adjust based on an index. This type of loan is therefore considered to be riskier because the payment can change significantly. But in exchange for the risk associated with an ARM, you can be rewarded with an interest rate lower than that of a 30-year fixed-rate mortgage.
  • Mortgage Loan Programs : Mortgage brokers often work with banks, since they are the most traditional lenders and typically offer the largest loans and best interest rates. But you’ll need a great credit score if you want the broker to secure a mortgage from a bank. If your credit has seen better days, then you may want to talk with the broker about other options. A number of federal, state, and local agencies offer programs to help those in need of assistance, which can include loans, down payment assistance, or subsidized building costs. Taking advantage of these programs can drastically reduce the cost of owning property, so carefully examine each type to see if one is suitable for you. Just be aware that applicants must meet a strict set of guidelines in order to qualify for these special loan programs.
  • Broker Reputation : It is also imperative to review each broker’s background and credentials. You will want a broker who has been in the mortgage business for several years and who works for a reputable company. See if his or her company has a high rating from the Better Business Bureau (BBB) or any awards from influential business leaders like J.D. Power and Associates. It is even beneficial to see the monetary settlement and complaint ratings awarded by the Consumer Financial Protection Bureau (CFPB). Little complaints, multiple awards, and favorable BBB ratings show that the company has high standards for its business practices as well as its employees.

A mortgage is a long-term commitment and a big responsibility, so it is imperative to find a broker who has your best interests in mind and who can provide you with the best solution. Once you find the right broker, you can be assured that your concerns will be handled properly and that you will get the attention and service you require. Never settle for anything less.

Read the sections below for more information on how to choose a California-registered mortgage broker, or head back to the search results page to start comparing your options now.

How Does a Mortgage Broker Get Paid, The Truth About, mortgage broker fees.#Mortgage #broker #fees

How Does a Mortgage Broker Get Paid?

Mortgage broker fees

Mortgage Q A: “How does a mortgage broker get paid?”

If you happen to use a mortgage broker to obtain your mortgage, you may be wondering how they get paid.

Mortgage brokers essentially work as middlemen between borrowers and banks/lenders, so they can be paid by either parties.

In the past, mortgage brokers got paid via yield spread premium (YSP), which was the commission the bank or mortgage lender provided in exchange for a given mortgage rate above market.

Mortgage Brokers Were Paid More for a Higher Rate

For simplicity sake, the higher the rate, the more YSP the broker would receive.

YSP was also referred to as “par-plus pricing”, “rate participation fee”, “service release fee”, and many other variations.

Mortgage brokers had the ability to make several points on the back-end of a loan, earning thousands of dollars, sometimes without the borrower’s knowledge.

They could also collect money on the front-end of a loan via out-of-pocket closing costs like loan origination fees and processing costs.

For example, a broker was able to charge one mortgage point upfront for origination, meaning one percent of the loan amount, while also tacking on loan processing fees.

The smaller the loan amount, the more points you d likely be charged, as a point wouldn t be as meaningful.

Trickier Mortgages Tend to Cost More

Generally, the more complicated or tricky your loan is, the higher the broker costs will be, as it takes more time and energy to close.

So if your loan isn’t plain vanilla, and requires a lot of tinkering and paperwork/legwork to make it work, you’ll likely be charged more, or offered less attractive pricing.

If the loan can be closed with any given bank or broker, you’ll probably be able to shop around to get a better deal.

Of course, there are always exceptions to the rule, and borrowers have certainly paid through the nose for perfectly simple loans.

Make sure you’re clear on what exactly is being charged by the broker for their role in the loan process or you may get a nasty surprise.

Retail loan officers (those that work directly for one specific bank) also get paid in a similar fashion and could potentially overcharge you, but their commissions don’t need to be disclosed like YSP, so you’ll never know how much they made on your loan.

This has led to an ongoing debate about the fairness of wholesale vs. retail lending, although it can actually be advantageous for a borrower to use a broker, as all fees must be disclosed.

In summary, mortgage brokers can make money from:

Loan origination fees

Yield spread premium (this practice is now banned)

Other possible admin/junk fees

If you re unsure about which route to go, check out my article on mortgage brokers vs. banks.

How It Works Today

As of April 1, 2011, the yield spread premiums described above were effectively banned. Today, mortgage brokers can only get paid by either the borrower or the lender, not both.

In other words, they charge you directly to close the loan or they get paid by the lender and you pay for that commission indirectly ( not out-of-pocket at closing) via a higher interest rate.

It s similar to YSP, but brokers must choose a compensation plan upfront with all the lenders they work with, as opposed to charging different amounts on each loan as they see fit.

For example, they may choose to earn 1% on every loan they close with Bank A. So if the loan amount is $500,000, they d earn $5,000. If it s $300,000, they only get $3,000. And so on.

But they may select a higher compensation structure with Bank B that gives them 2% on each closed loan. This essentially allows them to send their loans to higher-paying banks depending on their ability to sell the customer on a potentially higher rate.

So you can still get a raw deal. Perhaps more importantly, it means they can no longer get paid on both the front- and back-end of the loan.

However, you should continue to be vigilant and look over your loan documents to ensure you aren t being overcharged.

Put simply, you ll want them to send your loan to the bank that offers you the lowest interest rate, not the one that gives them the highest commission.

Commercial Mortgage Broker Comparison #prime #interest #rate

#commercial mortgage broker


Commercial Mortgage Brokers

Information verified correct on September 17th, 2016

Make a loan work for your business with a secured commercial mortgage on your commercial property.

Commercial mortgages are loans that are borrowed for any non-residential property; this can include the building in which you conduct your business, or a rental or investment property. Mortgages taken out on these kinds of buildings are used to purchase, refinance, or even to finance renovations to the interior or exterior of the building.

These kinds of loans are structured to meet the needs of the individual lender and borrower, creating a payment schedule, negotiating on the interest rate and amount, and the borrower’s personal and business-related finances and credit rating are taken into serious consideration before the lender can authorise any loan.

Want to know more?

What do commercial mortgage brokers do?

Commercial mortgage brokers act as the liaison between banks or other lending institutions, looking for a suitable business loan to help borrowers finance, renovate, or purchase their commercial properties. The brokers then sell the loan to the borrower, working in congruence with many banks and other mortgage organisations, offering a large range of loan options. Commercial mortgage brokers are required to know how the mortgage offerings work, what the mortgage market looks like, what the borrower’s best options are, and how to make the loan work best for the borrower.

Most mortgage brokers are part of a group, like the Australian Mortgage Brokers group, where credible brokers can be found. They are generally required to be licensed and educated, as they need to know about the appropriate products available and how they can best suit the borrower’s wants and needs in regards to his or her commercial property.

Why use a commercial mortgage broker?

Using a commercial mortgage broker is a great alternative to navigating the cutthroat business loan market yourself; brokers are well-read and well-versed when it comes to liaising with banks and financial institutions and finding the best loans to suit with what fits your plans for your commercial property. Brokers can offer a wider array of choices, they can help you negotiate mortgage terms to make them flexible, and they work solely for you and not for the bank or other lenders.

The broker can help you manage every aspect of your loan, often throughout the life of your loan. Brokers can help you to dispute fees, and act as a kind of intermediary force if required. This takes much stress off of you as you deal with creating your business, renovating, or refinancing, so that you can worry about your day-to-day business operations and let the mortgage broker handle the lender.

The different types of commercial properties

Commercial real estate is basically defined as property such as retail shops or office space which is used for commercial purposes. Some also include factories and warehouses in this, although these are also sometimes considered to be industrial real estate. Below are several different types of commercial properties that you may qualify for a mortgage on:

  • Office and/or warehouse buildings: These can include the typical larger buildings where you go to work in a cubicle or office. These building can also be small and only house offices of one company, or larger to house multiple companies in multiple offices or storeys. Warehouse buildings are defined as properties that are used to store business products and supplies.
  • Retail buildings: Malls or shopping centres are included as retail buildings, including individual stores in strip malls. Individual stores can be defined as an office or a retail building depending on the lender’s definitions and if there is a rate difference depending on the property type.
  • Land development: If you have plans to build a commercial property, you can submit plans for approval to the lender to get the loan needed to build the property. This is still defined as a commercial mortgage; many lenders and brokers may have their own policies in regards to this, so check all policies before submitting anything to be approved.

How to qualify for a commercial mortgage

Usually, if you have a business or other commercial entity, you can apply for a commercial mortgage. As the name of your business will be on the mortgage application and subsequent loan, the business itself must have a good credit score and the owning entity, whether it be you as an individual or not, must have a reputable lending history to be approved.

Other things that your selected lender will consider, and your mortgage broker will ask you to have available, include the following:
Corporate financial details: Details of the business’ profits, assets, and liabilities will be required. If you are just starting out, you must provide financial projections. The value, or projected value, of the property should also be submitted as the property or building is used by the lender as security against your loan.
Personal financial details: As you will be taking out the loan, you are expected to have a good credit history as well. Bring details of your own personal finances, expenses, and assets.

How to choose the right commercial mortgage broker

Choosing the right mortgage broker should not be something that you take lightly; as your business is your livelihood, you are essentially placing the fate of your livelihood in the hands of a broker. You must make sure that they are more than capable, with experience and credibility. Find a broker that you like to work with, as you will need to build a strong relationship and set the foundation for solid communication.

Brokers that cooperate with a large number of banks and financial institutions are able to negotiate a better rate for you, and to help you understand your application and potential mortgage. The more experience the broker has, the better. Research the broker’s reputation to ensure that the broker is reliable, along with the company that the broker works for. Companies with a high level of experience in the market are preferable, as they will have a better reputation with lenders and, therefore, clientele.

Also, ensure that your broker is part of a regulating body such as the Mortgage Finance Association of Australia (MFAA) or the Finance Broker Association of Australia (FBAA). This will ensure they adhere to various service and complaints handling procedures.

Commercial mortgages: frequently asked questions

Ask as many questions as you can of the broker so that you can feel comfortable to ensure the broker’s competency. Below are several Frequently Asked Questions about commercial mortgages:

How long will it take to be approved for the loan?

This depends on the lender and your broker; many commercial mortgages take 45 – 60 days to close.

What can I do to speed up the application process?

This is where communication with your broker is key; if they have a solid reputation with the bank or lending institution, they may be able to give you regular status updates on the application.

What kind of deposit do I need to make?

Typically, you should put down at least 20% and no less than 5% of the total mortgage. If you put down less than 20%, you may be subject to paying lender’s mortgage insurance until you have built up more than this 20% in equity.

What are the fees for extra repayments or paying off the loan early?

Like traditional mortgages, many commercial loans have a fee for early repayment of the loan. This will be discussed when you speak with your broker as per the lender’s terms. Check for any extra fees that may be associated with the loan.

What are the credit rating requirements for commercial mortgages?

This, again, will depend on the lender’s requirements. Generally, however, you should have a good to excellent credit rating to be approved for any loan. A proficient broker will be able to source a loan for borrowers with bad credit, although the rate might be higher than a borrower with a good credit score.

Using a broker to find the perfect commercial mortgage for you and your business is an ideal alternative to navigating the daunting world of borrowing by yourself. Be sure to investigate the broker and their reputation, and make sure that you are compatible in what your ideals are to borrow for your business.

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