As soon as I realized that my personal financial picture was a little bleak, I started thinking about taking out a personal loan. I wasn't really looking forward to going into debt, but I knew that if I wanted to solve a few short-term problems, a loan would be the way to go. I talked with a few of my local financial institutions to get a good idea of what they could offer me, and then I sat down to go over the paperwork. It was incredible to see how much money I could save by securing a lower interest rate. Check out my blog for more information about loans.
Mortgage brokers can help you get a pre-approved mortgage when no one else can. That is excellent news for anyone that wants to buy a home but is currently unable to do so because of a bankruptcy or a partner's credit issues. However, you should be prepared for a few potentially unexpected things when you go through a mortgage broker to secure a mortgage.
Non-Traditional Lenders That Operate in Another State
Sometimes, to get a mortgage, a broker will step outside state boundaries to find the best deal for you. This is completely legal, and it is quite typical. However, it means that your mortgage holder is probably going to be an investment firm, a foreign landholder/property management company, or a slew of other non-traditional parties lending money to you to buy your house. You will be able to speak with the lender when you need to, but most correspondence is limited to mail and phone calls during business hours only.
Adjustable Interest Rates That Can Change Quickly
Initially, your broker will quote you a rate that you can expect to be higher than with traditional lenders. That goes hand-in-hand with your credit scores and/or your partner's credit scores. However, because these rates are often ARMs (i.e. adjustable rate mortgages), you should expect to see a jump in rates as soon as the first few months or within the first few years. The sudden adjustment is often the result of the mortgage lender receiving updated credit reports on you and your spouse, if applicable, and especially if those reports reflect a difference in poorer-than-previously-reported credit ratings.
On a Positive Note...
Brokers can help you get the financing you need quickly. They can connect you to real estate lawyers and title companies as well as to recommended home insurance companies, with which you will have to secure your mortgage and title papers and your homeowners insurance before a property can be transferred into your name. Brokers can help facilitate a faster transition into your home so that you do not have to wait so long to move. That is also helpful from a renter's standpoint since you have to give your landlord proper notice that you are moving out into your own home. Brokers do advertise themselves as mortgage companies, but they are much more than that. If you would like to secure a broker's services, there is certainly one near you right now if you know how to look up mortgage brokers.
Share19 March 2019
