I have been asked...why use a broker to refinance?

Whether you're shopping for groceries or looking for a car, you want options. Shopping for a mortgage loan is no different. And there's no better place to find options for a mortgage refinance than with a mortgage broker.

Greg Mischio wrote this article and really summed up why a homeowner should use a mortgage broker when refinancing.

One of this summer's blockbuster films is the Fantastic Four, a movie based on the adventures of four superheroes. The quartet's leader is the genetically altered Mr. Fantastic, who can stretch his body like silly putty. Mortgage broker often use powers similar to the costumed crime fighter. They can stretch and shape a mortgage refinance to fit your financial situation.

Here are five reasons that explain the unique superpowers of mortgage brokers, along with a word on how to prevent a broker from stretching your refinancing budget past the breaking point.

1. One broker, many lenders. Mortgage brokers can put together a variety of loan packages because they have access to a wide range of lenders, who operate on a wholesale basis, relying on the brokers to find customers. A myriad of lenders operate on this basis, and brokers can choose whichever program fits your needs.

2. Superior access. A wholesale lender works only through brokers. As a result, consumers don't have access to their special programs or rates. You need to work with a broker if you want access to wholesaler's unique loans.

3. Stretching that loan package. A broker doesn't have the constraints that you might find at a bank or credit union in terms of structuring a deal. They can stretch or limit their fees and the terms on the loan. More flexibility on the part of the originator means a more flexible loan for you.

4. The ability to be disloyal. A mortgage broker doesn't need to be loyal to a vendor. If you're unhappy with a particular lender or don't like the package it puts together, the broker has the freedom to look elsewhere. Wholesale lenders understand this, and they do what they can to keep the mortgage broker happy.

5. Third party flexibility. The same flexibility brokers have with loans also applies to third-party vendors, like appraisers and title companies. Brokers can shop around until they find the best prices with the best quality work-and they can move very quickly.

For all their flexibility, mortgage lenders do have their downside. Because it's relatively easy to become a mortgage broker, many don't have extensive training or knowledge in the industry. They also derive much of their compensation through fees, so you'll need to keep a close eye on your Good Faith Estimate. Be sure to ask for references and check with the Better Business Bureau before signing on with one of them.

If the broker proves to be established and reputable, let her put her fantastic powers to work. The result should be a refinance that makes a mortgage broker look like a real superhero.

Did you hear this...?

This year has been a challenge for those working in the mortgage industry. In case you didn't know it, the end is here! No more banks lending money to the average person like you and me. No more tapping into your equity to pay some bills, send your kids to college or remodel your house. No more homes are being built, bought or sold. ...or at least that is what they (whoever "they" are) would like you to think.

Did you hear this during the last couple of weeks???
Home loan demand surges as interest rates drop
(USA Today)

Mortgage Applications Rise Last Week Despite Market's Problems
(Yahoo.com)

Mortgage applications climb
(Mortgage Bankers Association)

The reality...builders are still building, home buyers are still buying, homeowners are still refinancing, etc... Now that is not to say that it hasn't gotten tougher on the people in the mortgage business and the consumer. It definitely has.

The mortgage brokers and bankers have definitely had a lot to overcome. More stems from the bad news in the media than anything else. Keep in mind, I am referring how this relates to you getting a loan, not all the complicated behind-the-scenes financial stuff that makes the system work (and yes, there have been some huge bumps in the road that have driven many businesses out of business). For a while there, all you were reading was that rates were about to go through the roof and it would be impossible to get financing. Simply not true.

The consumer has to be more responsible with their finances in order to secure a loan. Get that credit score up & pay off that debt and you'll likely be fine in your search to obtain financing for a home. You can't just walk up off the street, with bad credit and no income, and get a mortgage like you used to. However, their are still mortgages that fit just about everyone...at very good rates!

Just this week, more doom-and-gloom could be found right here in our backyard. An Atlanta darling, Homebanc, effectively went belly-up and closed mortgage operations (sold/migrated some to Countrywide). Newspapers telling everyone had bad the industry is.

Well, things are tough but there are still some very good mortgage brokers that are there for you...the consumer. We do have some advantages that have shielded us in these rough times. You see, brokers partner with dozens & dozens of banks, lenders and other financial institutions that lend you the money to finance your home. If one goes out of business...say Homebanc for example...that's OK, a broker typically has dozens of additional resources to make sure you have the best loan program at the best possible rate.

In close...don't always believe the hype. All you have to do it call a mortgage broker that you trust and talk to them about your scenario. You'll know for sure in just a couple of minutes if you indeed can still build, buy or refinance that home!

CrossWay Mortgage Selects Google's Blogger to Shed Light on the Mortgage / Loan Industry

Every day the questions are the same... What are the rates? What is the best loan program? What costs are involved in financing my home? Why should I use xyz company? etc...etc...etc...

There are no wrong questions...but there are wrong answers. We see it all the time. You hear it all the time. You know, the radio ads where that guy is YELLING at you! The other ads where they are going to do everyone's loan for free! hmm...and I guess all those folks in their offices work for free?!?

When purchasing a home, you are typically making the single largest purchase decision you will ever make. The company / person you choose to help you through this important process can save or cost you many thousands of dollars over the life of your loan. When I bought my first home...I talked to that guy who was yelling at everyone on the radio. I also talked to that girl on TV who promised to do my loan for free. After talking with both, and a couple of other "professionals", I made a decision to talk to some local folks.

These local folks represented what I think we all are looking for when we are getting ready to make this important decision. Honesty. Loyalty. Integrity. The guy held my hand (NOT literally!) though my first home purchase and it turned out to be a simple and pleasant process. Not a single moment over the following 5 years did I look back and regret that decision.

When it's time for you to make that important decision, whether it is your first or fifth time getting a home loan, make sure you take a step back and filter through the hype. More often than not, it'll come back to bite you down the road!

CrossWay Mortgage Group, based out of Norcross, GA, has decided to start sharing our experiences with you to assist you in making this very important decision.