Mortgage Tips For Consumers:

As a mortgage professional I feel it's my duty to educate consumers about residential mortgages. When obtaining a mortgage it's essential as a consumer to check at more than one place. Even though mortgage companies don't really like to be shopped, you as a consumer really won't know the figures if you don't check with a few brokers or lenders. Both, brokers and lenders have their pros and cons but in todays market to me it seems more convenient to check with brokers.

Brokers, usually are sigend up with 50+ lenders and typically in today's market brokers can give you somewhat of a better deal than a direct lender. It's almost a fact that a broker will always find you a lower rate, but broker's closing costs in most cases are $1000.00+ more than lender's closing costs. In this case, you as a consumer you must think through which is really better for you.

In my perspective, if you are refinancing or purchasing a home where you won't stay in for more than 3 years my suggestion is to go with the lender. But, if you are going to stay in that home for more than 3 years, in that case getting a mortgage through a broker is more recommended.

When you deal with a broker, try to negotiate your way of not paying an appraisal and or credit report fee. In many cases a broker will accept these terms. (Trust me) Also, never accept closing costs to be over $3000.00 as nowdays closing costs are less than $2000.00. Finally, don't buy down the rate. What you are qualified for is what you should accept or not accept but never pay points to buy down the rate. It's money out of your pocket (thousands) to save $15-50 a month. (Not worth it)