Being a mortgage broker that is honest can’t be an easy thing these days. In the latest months, a lot of big companies don’t work with brokers anymore and some banks will not give money to the clients of brokers. For example, the PMI Group, which is a big mortgage insurance company, refuses completely to underwrite loan policies initiated by a broker.
In the meantime, the Congress is planning to pass a bill that will not allow brokers to get their clients into loans that have the potential of damaging them. This bill will affect even the brokers that haven’t been using such practices.
In these times, those that borrow money will need a lot of guidance. Since the mortgage rates are quite low, the need for refinancing is fueled. The problem is that the loan rules of banks change on a regular basis and the volume is overwhelming since the staff is not enough.
If you’re looking to buy a bargain house or to refinance, you might have a problem. Since a lot of companies try to stay away from mortgage brokers, shouldn’t you stay away as well?
Going to a bank on the other hand, is another problem. While with a broker you risk getting ripped off, with a bank you risk getting incompetency. Remember that a mortgage broker ultimately has his own interest at heart, not your own. If you need the best possible rates, you should hunt them down on your own, finding the best deals.
The easiest way to shop for home financing would be to choose a certain type of loan, like a fixed rate mortgage over a 30 year period. As terms and rates can change on a daily basis, use a full day to call and find the information you need, so you can pick the best option for you.