Homeowners on the hunt for a mortgage in 2017 have more at their fingertips than ever before. Often, borrowers gravitate to their local banking office to secure a mortgage for their new home. But, increasingly, new homeowners are finding it easier, and more cost effective to finance the purchase of their new home with the help of a private mortgage broker.
While each entity may share the same goal, mortgage brokers differ from their big bank and online counterparts in a few ways that benefit customers.
How Mortgage Brokers differ:
At any bank, the person who reviews and approves mortgage applications is called a loan officer, or maybe even a loan originator. But despite similar titles, there are some significant differences between a loan originator working at a typical bank and one at a private mortgage brokerage.
One of the largest differences between the two are the legally mandated licensing and registration requirements. A loan officer or originator working at a depository institution (Bank or credit union) must be registered under the National Mortgage Licensing System. Once approved under this system, the loan officer is authorized to originate mortgage loans for their company. As a loan officer with a private mortgage brokerage, however, the standard is arguably higher. Since they are considered “non-depository institution” loan officers at such company’s must not only be registered under the NMLS, but also must pass a rigid financial exam, and obtain a license in the state where they operate.
This additional license requirement means private mortgage brokers must undergo at least 20 hours of state-mandated coursework, as well as at least eight hours of continuing education and testing per year. Mortgage brokers are often more experienced and can save you the groundwork of finding the best mortgage rate and terms for your specific needs.
Jackie Toppin, NMLS 50162 is a professional mortgage broker licensed in Alaska, Texas and Colorado. Jackie has been helping individuals and families finance their new homes for over 35 years. She can be reached at (907)-644-0491 or email at jtoppin@GMSMortgageService.com
Financing a condominium is quite different than financing a single-family home. The condo’s Homeowners Association must meet certain criteria to be approved for financing using standard Conventional, FHA, VA and USDA home loan financing. If the HOA’s project does not meet these criteria, the property is considered a “non-warrantable” condo. Meaning… You cannot obtain standard “typical” financing that is available for “warrantable condo’s.
Early investigation into the viability of a condo project meeting the standard loan programs is critical when deciding on a home in a particular condo project. Most lenders have access to the HUD, VA and AHFC websites to search for approved projects, but often forget to check until their buyer is already under contract. You can save yourself a lot of time and heartache by using the FHA Condo Search; VA Condo Search ; AHFC Condo Search links. If you are seeking conventional financing, then your lender or agent will need to send the HOA project manager a “condo questionnaire” to complete to determine if it is eligible for conventional financing.
What do you do when you have found the perfect condo, at the perfect price and it is found to be a non-warrantable condo? Financing can still be obtained for these units; however, you will be asked to make a higher down payment, most definitely will pay a higher interest rate, and most investors require a borrower to have a credit score of 680 or higher. But, considering you just purchased a condo at below market price compared to other similar projects, the difference in your monthly payment may be minimal.
When you are considering purchasing a condo as your next home, talk to the experts. Guaranty Mortgage Service., Inc. has the knowledge, experience and loan programs to finance both warrantable and non-warrantable condo’s. We can guide you through the process, and verify prior to purchase whether the condo’s you are looking at meet standard financing guidelines, or whether you would need to proceed with a non-warrantable loan program.
Call us at 907-644-0491 or apply online at www.GMSMortgageService.com
By Jacqueline (Jackie) Toppin. Jackie is the President of Guaranty Mortgage Service, Inc.,
4300 B Street, Suite 301., Anchorage, AK 99503. Jackie has been in the mortgage industry for over 35 years, and has extensive experience in financing condominiums.