You’ve heard of real estate agents, but what is a mortgage agent? Traditionally, the term loan originator or loan officer was used to describe someone who is licensed to take a mortgage application. But, these days, the entire mortgage process can be completed online with no need for conventional loan officers. You don’t have to walk into a bank or even pick up a phone. But, you do need someone looking out for your best interest. At RateJab, we coined the term “Mortgage Agent”. Your mortgage agent is someone who will guide you through the process. Your mortgage Consigliere.
Why Do you Need a Mortgage Agent?
The mortgage process can be tricky. For starters, there are many types of loan products out there and new ones that hit the market every day. Most people are aware of FHA loans with a minimum down payment of 3.5%. But, most people are not aware of conventional mortgage programs that allow you to purchase a home with as little as 1% down.
When it comes to closing costs, the traditional view is to roll it into the loan or pay the fees out of pocket to get the lowest interest rate. But, many times, a financial analysis from your mortgage agent will uncover that it actually makes more sense to lock in a higher rate and have the lender pay the fees. The same can be said for monthly mortgage insurance. Many lenders offer products without any mortgage insurance even if the borrower has a low down payment. There are higher rates with these types of loans, but if the borrower plans to own the property for a relatively short amount of time, it will make more sense to offset these upfront costs with higher interest paid on a monthly basis.
There are also many things to prepare for before the application is submitted that a mortgage agent can help with. For example, it is much easier to close a loan when all cash for your down payment has already been put into one single bank account. Transferring money from your 401K or depositing funds from relatives during the application process will mean more documentation and a longer process.
A mortgage agent will help you maneuver through these choppy waters and will make sure that you avoid any missteps. At RateJab, our mortgage agents make themselves available when you are, including nights and weekends. You can send a text, schedule a call or send an email. It’s important that your RateJab mortgage agent is responsive to your needs and provides just the right amount of support throughout your home buying adventure. Buying a house can be one of the most stressful life events. It’s important that you have a good real estate agent helping out to find the best property and working with the best mortgage agent to find your dream loan.
What Does a Mortgage Agent Cost?
Here’s the best part. Mortgage agents at RateJab are not paid by the borrower. You can contact us as many times as you want without any fees. There is no cost to apply and you can get free advice on how to repair your credit report. Many borrowers contact their mortgage agent months or even years before they intend to buy a home. There is never a cost to do this. So, how does a mortgage agent get paid? The borrower will never have to pay for the services of a mortgage agent because the lender is the one who provides a commission when the loan closes. This commission is not part of the closing costs. The value of each loan to the mortgage company who services it each month is enough to cover all related fees to your mortgage agent.
Mortgage Broker vs. Mortgage Agent
Is a mortgage agent the same as a mortgage broker? It depends. Most traditional mortgage brokers are still “old-school” when it comes to how they deal with customers. Their technology is outdated and their process for taking applications and processing loans is slow and inefficient. Mortgage agents at RateJab utilize new financial technology that make getting a loan incredibly easy and even a little fun. With the millennial mortgage borrower in mind, we have put the entire loan application online and most of the documents needed for approval are pulled automatically since our system integrates with your bank accounts and payroll company.
A new day has come for the mortgage industry and a new term is needed. Your mortgage agent, or loan Consigliere will get you to the closing under budget and ahead of schedule. Who knows, after everything is done you may also have a new friend.