Category: mortgage broker

What to Know: Mortgage Broker versus Bank

Broker versus Bank

Introduction – What are my options when securing a new home loan? 

When it comes to securing a mortgage, you have a few options. You can go directly to your bank, although banks only offer their in-house products, or through a mortgage broker. Both of these options can help you achieve your mortgage goals, but there are a few things to consider. We’ve broken down some of the primary advantages and disadvantages of these choices. 

So, what’s the distinction between mortgage brokers and a bank?

As mentioned previously, banks only offer their in-house products. This can sometimes be very limiting and harder to qualify for due to stricter guidelines with fewer products. However, if you have a long-standing relationship with a particular bank, they are oftentimes able to offer you great rates and pricing since they already have an established relationship with you and are familiar with your financial standing (aka your ability to pay them back). It is entirely situational. However, there are some other cons to financing through a bank. When you work with a loan agent at a bank, it is important to keep in mind that they don’t represent you, they represent their financial institution. Their financial interest is in their employer. They often times have stricter rules and guidelines, sometimes resulting in a high chance of denial. 

Mortgage Rates will differ depending on the bank and depending on the brokerage.  

A mortgage broker acts as an intermediary between you and direct lenders and has access to numerous lenders. They can select a particular lender and program depending on your particular needs. Once a lender is determined, the loan officer works between the both of you, collecting necessary documents, and communicates with the lender’s underwriting to fund your loan. Loan officers at a brokerage represent you and your interests rather than a specific lending institution.  

How to choose between a mortgage broker and a bank: 

Both can be very viable options. It is wise to review loan options for both a mortgage broker and your bank to compare. One isn’t always better than the other and it is beneficial to weigh your options from multiple sources. If you have an established relationship with a bank and have gotten a mortgage through them before, they will likely be able to offer you great financing. If you are in need of a more personalized loan or want access to a more variety of loans, a brokerage may be the solution to your mortgage needs.  

Prequalifying for a mortgage through both a bank and mortgage broker will help you know your options and compare Mortgage Rates

Conclusion –  

A mortgage loan is a significant financial commitment. It is important to weigh all your options to guarantee you are receiving the best financing. Not only that, but you have to consider your goals and long-term plans. Circumstances change and it’s important that your mortgage aligns with your current circumstances and goals. Mortgage professionals from both banks and brokerages have experience and industry knowledge that can help guide you in the right direction. At the end of the day, it really comes down to service quality and rates. There isn’t always a wrong or right option.  

Filed under: Blog, mortgage broker

In 2021, How Do You Get the Best Mortgage Rates?

Vieria Mortgage Team

Whether you are purchasing your first home, refinancing, or remodeling, a new mortgage can help you achieve your goals. However, it is important to prepare in order to secure the best mortgage rates and programs. Here are a couple of things to keep in mind that help you know how to get the best mortgage rates.


  • Improve the credit score


Your mortgage rates are contingent on your credit and other major factors. The better your scores, the lower rates you may secure at a lower cost. Even if your credit scores are on the lower side, there is still plenty of opportunities to secure great financing. Our loan officer, Jason Vieira, finds creative ways to increase your scores and open the possibility for better financing if need be. You can improve your credit score over time with timely bill payments and not missing any payments such as your mortgage, credit cards, and student loans. One of the biggest benefits of working with mortgage brokers such as ourselves is there are far more programs and lenders available, including for borrowers with lower credit scores, that you may not have access to through a traditional bank. 


  • Employment and Income 


To qualify for your mortgage, you should have two years of consistent employment history and a month’s worth of paystubs to show. Exceptions are made in certain circumstances but two years is the standard length of employment. The same applies to those who are self-employed. You must be self-employed for two consistent years in order to use your income to qualify. Those who are self-employed are also subject to additional requirements such as a  P&L statement. 

  •  Save for a down payment

Oftentimes, a larger down payment will allow lower mortgage rates due to a lower loan to value ratio. The standard is  20% of the down payment but depending on the seller and other circumstances, you may have the ability to put down a lower down payment. It also depends on the lender and their guidelines. Your mortgage loan officer will know best and how to proceed based on your individual circumstances.


  • Shop among multiple lenders


When looking to secure low mortgage rates, it is wise to receive quotes from more than one lender. When you go to a traditional bank, they only offer rates and programs offered by that specific institution. When finance through mortgage brokers, you’ll have access to multiple lenders. The Vieira Mortgage Team has access to over 30 lenders and will present the very best rates and programs to you from multiple lenders. 


  • Lock in rates at the best time


The closing process sometimes takes several weeks, during which the mortgage rates can fluctuate. Once your loan officer recommends locking the rate, it is wise to do so. They know the market better than anyone and when it is the best time to secure your rate or wait. 

Take professional assistance for better results.

To secure the ideal personalized programs and best mortgage rates, contact the Vieira Mortgage Team. We are a reputable team that has secured the best financing for over 7,000 homeowners. As a mortgage broker, we have access to numerous lenders and more personalized programs to fit your unique situation. Whether you are refinancing in Orange County or elsewhere in California, need cash, or are purchasing a new home, you can trust the Vieira Mortgage Team with all your mortgage needs

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What Are the Advantages and Disadvantages of Mortgage Broker?

Whether you’re thinking of buying a new home or a car, a mortgage broker can undoubtedly assist you in accomplishing different tasks such as documentation or paperwork and availing the mortgage at the available rates. They are quite professional in their work and process residential and commercial mortgage loans on behalf of the client. But at the same time, while looking for a mortgage broker, you will find such professional services at different terms and rates. 

So, how would you recognize who is ideal to find you the right mortgage? There is a high chance that you end up with an experienced and competent mortgage broker. But do you know they both have advantages and disadvantages? So, before you start your hunt for the right mortgage broker, we suggest you go through this blog post, listing the pros and cons of hiring a mortgage broker. All these below-listed points will surely assist you in your search. 


The following are a few advantages of a mortgage broker. Enjoy a look-

  • Expertise 

The first advantage on our list is that they have gained a well-experienced in the market, hence being aware of all the tasks required in the home buying and refinancing process. They usually work in different industry niches, so they have good experience providing the best mortgage solutions to different clients. They also know about the different types of mortgage loans that a borrower always wishes to be offered within different circumstances. With mortgage broker assistance, you can easily get a beneficial mortgage deal to obtain the right loan.


  • Deliver Personalized Service


When it comes to hiring a mortgage broker, there is a good chance that you won’t expect to be welcomed with personalized services. This is what sets mortgage brokers apart from others. They offer you a smooth process from start to finish and advise you when you want the expert’s point of view. 


  • Provide Access to Lower Rates


When you hire a mortgage broker, the probability of accessing lower wholesale rates on home loans increases because these professionals know how to bring you the right deal to benefit their clients. You will be surprised to know that these rates are lower than the retail interest rates. So, hiring such professionals is a beneficial decision as they will help you save more. 


  • Welcome With Multiple Loan Options 


Another great advantage of hiring a mortgage broker is that they offer you multiple loan options. Because mortgage brokers work with different lenders, it directly points to the fact that you will have more options for the home loan in terms of interest rate and other loan terms. 


  • Provides Flexibility


A mortgage broker provides complete flexibility in handling your mortgages or refinances Orange County. No matter how many credit issues or bumps along the way, mortgage brokers offer the ideal mortgage solutions to benefit you and successfully obtain financing. 


The following are a few disadvantages of a mortgage broker. Take a look-


  • Maximizing Compensation


The downside of getting in touch with a mortgage broker is the higher commission paid directly from the lender; mortgage brokers work to fund loans. Such higher commissions sometimes become the reason for a conflict for the broker. In such a case, borrowers usually are unaware of if they are getting the beneficial deal.


  • Uncertainty on Final Numbers


Another disadvantage of hiring mortgage brokers is that they do not provide a good faith estimate that doesn’t include the final details of the mortgage payment, the home loan fees, or the interest rate. When you are not aware of such details, there is a high chance of receiving unexpected loan terms at closing that can cost you more and more. 


  • Unexpected Broker Fee


When working with a mortgage broker, lenders’ fees are affordable, but at the same time, there is a high chance a broker fee will be accessed by borrowers. The broker fee may vary from one professional to the next. Sometimes, home buyers have to pay more broker fees that add to the disadvantages of hiring a mortgage broker. 


  • Missing Out on a Great Deal


We have discussed earlier that mortgage brokers help you find the most affordable mortgage but at the same time, you must know that brokers have access to many different mortgage lenders, but not all loan providers work with brokers. They offer the loans directly. It is highlighting the fact that a borrower may not be getting the best loan rate or term. You are missing out on the best deals because the broker is just limited to the lenders. 

Final Words

So, this is all about the advantages and disadvantages of hiring a mortgage broker to obtain finance. Before saying yes to any professional, you must read out the benefits and prepare for the disadvantages you may encounter on the way. 

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6 Options for Refinancing Your Mortgage With Bad Credit

When looking for ideal ways to refinance with bad credit, you can face many hurdles and challenges. However, there are various opportunities that you can avail yourself of to have a smooth refinancing experience. But before you look for your refinancing options, it is better to consider if refinancing is the right choice for your finances. If you are satisfied, here are the top 6 ways to refinance your current mortgage with bad credit.

1. Contact your current mortgage company

To begin finding a good refinancing source, you should contact your current mortgage company. Generally, a mortgage company has various refinancing options available for present customers. Also, they may have streamlined and term finance that can help get low rates.

2. Change the loan term

Your current loan term on the mortgage can greatly affect the monthly payment. With a shorter loan term, you will have to clear out your loan amount in a large sum. So, if you want to save money, you can stretch out your total mortgage amount on a longer loan term during refinancing.

3. Lower interest rate 

A low interest rate can greatly impact the final cost of your Mortgage Rates loan. Given the current rate of interest, refinancing is the best choice. However, if you are stuck with a high interest rate, then refinancing will help you save thousands over time.

4. Remove mortgage insurance

Having mortgage insurance is like an additional expenditure you need to make from your budget. However, as it is unavoidable when first taking a VA loan, you might consider refinancing to eliminate the insurance from your payments. 

5. Pay off debt 

In case you have a sustainable amount of equity in your home, you can choose cash-out refinance. It will be a helpful tool to eliminate paying higher interest. A cash-out refinancing option will offer you the funds you need to eradicate any higher interest debt on your current financing.

However, before you move ahead, it is better to consider the refinancing cost against the outstanding debts. While comparing, you will notice that you will be able to save money on your higher-interest debt as it is only this way that you will benefit from refinancing.

6. Full home improvements 

By opting for cash-out refinance, you can benefit greatly. For instance, when in need of funds to cover the home improvement cost, a cash-out will be the best solution. With this, you will save greatly on the equity you have in your home for any improvements. However, it will prolong the term of your mortgage loan in Orange County. But depending upon your situation, you can benefit a lot.

Take Professional Help For Better Results.

There are various refinancing options you can consider. However, to ensure you benefit, it is better to consult a mortgage broker in Orange County. Professional help will ensure that you choose the best refinancing option that drives positive results for you. If you are looking for the right company, The Vieira Mortgage Team is a perfect choice. We have years of experience in offering our mortgage solutions. 

Contact us to consult our professionals.

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