A mortgage is an agreement in which a borrower pledges property as collateral in return for a loan that is secured against the borrower’s property. In general, a mortgage is considered the most traditional form of financing, with the exception of bridge loans, and is often used to finance homes in place of conventional financing through banks or other lending institutions such as credit unions. A mortgage broker is a licensed financial agent who works under the authority of a broker company. A broker does not control the lending criteria, loan process or approval, though most brokers do have significant input into these areas.
Mortgage brokers are required to complete an in-depth Financial Services Bureau report that discloses their professional history, business objectives and areas of expertise, as well as any regulatory complaints or state licenses that have been revoked. Finding the best mortgage for your needs is largely dependent upon the type of loan you need and the current interest rate environment. Lenders all have different types of loan products and fees and can vary greatly in service, ability to meet loan needs and other fees that can offset some or all of the benefits of a mortgage product. Finding the best rate can be daunting and often involves a lot of financial research, comparison and communication between you, the lender and your chosen broker.
People with credit problems are also good candidates for mortgage financing. Many lenders will consider a person to be high risk if they have poor credit histories or have bankruptcy filings. The key is finding the lender that is willing to approve a mortgage loan even with bad credit, but may be a little more difficult to locate. Some options for people with credit problems include getting a cosigner who is a friend or family member, working with a mortgage broker who has personal knowledge of mortgage companies and can provide referrals, or working with a nonprofit group, such as the American Housing Partnership, that helps people with credit problems get mortgage financing.Wayne Saman