There are many different options available to persons searching for a home loan. If a strong relationship has been established with a bank or credit union, buyers may choose to secure financing with these institutions. Because buyers are typically concerned with getting the best rate possible, they may seek the help of a mortgage broker. If looking for a mortgage broker in Alaska, home buyers should proceed with caution. Currently, mortgage brokering is not regulated in the state. Moreover, Alaska mortgage brokers are not required to work from a physical office. For this reason, buyers may encounter a dishonest broker. Still, there are ways to find a good broker.
Who are Mortgage Brokers?
Some people confuse mortgage brokers with lenders. However, the two businesses are very different. While a mortgage lender provides the funds for a home loan, a broker’s responsibility involves finding the right lender for their clients. Home buyers have different needs. For example, a buyer with an ideal situation may have a 20% down payment, good credit, and funds to cover closing costs. On the other hand, another buyer may have limited assets for down payment and closing, and a terrible credit report. Brokers work with different buyers, and locate the best loan according to each situation.
Multiple Home Loan Options
A good mortgage broker in Alaska will have access to a variety of home loan programs. There are literally hundreds of programs to assist buyers. If applying with a traditional lender, the institution may only offer two or three loan options. Buyers who do not meet the loan requirements are not approved. On the contrary, a good mortgage broker will work diligently to get a client approved. They will have relationships with various lenders who offer non-traditional home loans. Moreover, a good broker will help their client obtain the best rate possible.
Mortgage Broker Referrals
Because Alaska does not regulate mortgage brokers, it is easy for someone with a criminal history (fraud, stealing, deceit, convictions, etc.) to operate a brokerage company. Thus, home buyers become susceptible to unfair practices. While there is no way to completely protect self from fraud, getting a referral from a real estate agent or previous buyer may lower the odds of being ripped off. Before choosing a mortgage broker, ask for recommendations.