Philadelphia Mortgage Brokers

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How Can a Philadelphia Mortgage Company Assist in Customizing Your Loan Quote?

Whether you are considering a home purchase, large-scale rehabilitation, or entirely new construction for your home-owning future, you will likely need to consider external financing options. Experienced mortgage lenders or brokers can help you access the necessary funds to finance your next property.

Philadelphia and the surrounding regions are home to many knowledgeable, accessible, and committed mortgage lenders. Regardless of your financial situation and your goals, it is best to consult an expert who knows the ins and outs of the industry. If you need assistance with financing or refinancing, call us today.

Philadelphia Mortgage brokers serve as the intermediary between you and your lender. As many brokers work consistently with the same lenders they have developed trustworthy relationships. Experienced brokers have a lot of experience under their belts and can significantly simplify the loan process for their customers.

As licensed and highly regulated financial professionals, mortgage brokers can guide you through the entire loan process. From gathering documents to running your credit report to checking if you may qualify for a specific loan, an experienced broker takes the burden off of you and serves as a trusted resource you can turn to with any questions.

Unlike most loan officers, mortgage brokers work independently from lenders. This independence can help the broker offer you greater options. As to compensation, brokers typically receive a small percentage of the loan value. The percentage amount is largely determined by the region you are looking to purchase in.

Consulting with a Philadelphia Mortgage broker before applying for a loan might help you improve the chances of a successful application. Your broker can review your financial documents and help structure the application for you. They might also recommend that you apply for various loans with different interest rates, terms, and fees. This will give you a wider choice in loans when you ultimately decide.

How can an experienced Philadelphia Mortgage Broker guide you?

Before choosing a broker, you should do some research about the types of loan options they can provide. Certain brokers only work with a specific type of loan, such as a conforming loan. This is a type of mortgage that meets standards set by the Federal Housing Finance Agency (FHFA) and Fannie Mae and Freddie Mac guidelines.

These are the most common type of loan on the market and typically have lower interest rates than non-conforming loans, but have a maximum limit on how much funding you can borrow. Other brokers might work with jumbo loans, often used for pricier, higher-end properties, and other non-conforming loans.

The mortgage loan market can be complex and your broker can address all of your questions, helping you better navigate the market. It is important for you to work with a reputable Philadelphia Mortgage Company that you can trust.

How to choose a Mortgage Broker in Philadelphia?

Buyers utilize at least five types of common loans. The number of options can be difficult to sift through on your own. An expert broker realizes that the process can be confusing and thus will break down your options into manageable steps.

A good broker should be approachable and ready to address your concerns. Since taking out a mortgage is a significant step in your financial journey, absolute transparency in pricing is a must. The right broker will be upfront about your costs and be able to explain the financial details of your situation.

Which loan type is best for you?

Conventional loans

These loans might be right for a borrower with good credit (above 620) and the ability to make a significant down payment. If your down payment exceeds 20% of the purchase price, you likely will not have to buy private mortgage insurance (PMI). Overall cost the total cost of conventional loans tends to be lower than for other types of loans.

Fixed-rate mortgage loans

With a fixed-rate mortgage, the interest rate and interest payments remain the same for the entire duration of the repayment term. This might be a good option if you are planning to stay in your property for the long term, as the monthly payments are very predictable. If you have a non-fixed-rate loan, high-interest rates in your area can result in you paying more over the long term.

Adjustable-rate mortgage loans

Adjustable-rate mortgages (ARM) are 30-year loans with interest rates that reflect the movement of the market. There is an initial period of 5, 7, or 10 years where the interest rate is fixed, typically at a rate that is lower than the market, after which your interest will change depending on market rates. This may be a good option if you are only planning to own the property for the short term.

Federal Housing Administration (FHA) Loans

FHA loans are backed by the Federal Housing Administration, which limits a lender’s loss if their borrower defaults. These loans have more flexible financial requirements than conventional loans and may allow a credit score as low as 500 if a minimum 10% down payment is made, or a credit score of 580 with a 3.5% down payment.

Veteran Affairs (VA) loans

VA home loans are a service benefit for eligible military members, including veterans, and certain families. These are a type of government loan backed by the Department of Veterans Affairs (VA) and allow qualifying members to receive lower-cost mortgages with no down payment. Due to their lower credit requirements, VA loans are considered non-conforming and are used to increase the accessibility of homeownership for current and former military members.

Need a loan? Contact a Philadelphia Mortgage Broker

Taking out a mortgage can feel like an enormous step. It is always a smart idea to consult with a qualified broker who can guide you through the process. Your broker understands the market, will help you navigate principal and interest rate options, has the resources to find your best options, will address your concerns, and has your best interests in mind.

Our Dynamic Funding team members can help borrowers obtain the mortgage that fits their needs. Call us today at (215) 364-7171 for a free consultation.

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