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Are you looking to buy a home in Oregon? If so, you’ll want to team up with an experienced mortgage broker to help you find the best lender and lock in the appropriate mortgage product for you. In this article, we’ll discuss why working with a mortgage broker is the ideal way to go about getting a mortgage and how these experts can simplify the process of understanding your Loan Estimate.
When applying for a mortgage loan to pay for a home purchase in one of the many great cities in Oregon, you’ll need a lender to help you out. Of course, your local bank can serve as your lender; you may be better off working with an Oregon mortgage broker to help.
If this is your first time purchasing a house, you may be wondering what exactly the difference between a lender and a broker is? Well, a mortgage lender is essentially a financial institution that makes loans to you. A mortgage broker, on the other hand, does not lend money. Instead, a broker helps you find a lender.
That said, a broker may work with many lenders, but these professionals are not employed by anyone lender. Rather, they work independently to help borrowers all across the Pacific Northwest find the best lender and mortgage product for their situation. So, now that you have a better idea of what a broker can do for you, let’s go over a few reasons why you should work with an Oregon Mortgage Broker.
For starters, it takes a lot of time and effort to shop around for lenders and compare available mortgage products. More specifically, scoping out the features of each loan product – such as interest rates – can be very time-consuming. Therefore, instead of doing all that yourself, you can enlist the help of a mortgage broker to do it for you.
While lenders will have their own posted interest rates, there’s no reason why you can’t wheel and deal with them to see if you can shave off a couple of points from the rate you’re offered. This can help save you quite a bit over the life of your mortgage. But instead of you doing the bartering yourself, your mortgage broker will use their negotiating skills on your behalf.
Plus, rather than just dealing with one or two lenders, mortgage brokers tend to have dozens of lenders within their network of professionals. As such, you’ll have several lenders to choose from all in one place. Compare that to banks, which can only offer you the limited scope of products that they have.
Mortgage brokers understand all the ins and outs of the mortgage industry, as well as all the products and their features. With their level of skill and expertise, you can tap into their wealth of knowledge to help you choose the right lender and mortgage product for you.
The mortgage specialists that you may deal with at the bank might be there to help you secure a home loan, but at the end of the day, they work for the bank that employs them. As such, you won’t truly have your best interests looked after.
Instead, mortgage brokers work for you and not the lenders they have within their network. Considering this, your mortgage broker will make all the necessary moves to ensure that you end up with the best mortgage product and terms for you.
Ultimately, the decision comes down to your preferences and whether you feel you can save time by using a mortgage broker. If you feel you can research loans and options on your own, you may prefer to work directly with a lender—but honestly, who has that much free time? So, instead of rushing through the process of finding the right OR State lender, why not let an expert Oregon Mortgage Broker do the heavy lifting for you and let them determine which lender is right for you.
As a borrower buying a home in Oregon, it’s important for you to know exactly how much you will be required to pay every month as part of your obligations to your mortgage. It’s one thing to know what your loan amount and interest rate are, but there are several other potential fees that you may be charged as part of the underwriting process.
By law, you have the right to be provided with a detailed list of all the fees associated with your mortgage before a deal is finalized. This rundown of closing costs is provided to you in the form of the Loan Estimate, which lenders are required to provide to borrowers within three days of applying for a mortgage.
This gives you enough time to assess all fees and determine whether or not you are comfortable with these costs and capable of covering them. Typically, loan estimates list a number of different costs, including interest rate, discount point fees, lender fees, appraisal fees, credit report fees, and more. You can also expect your loan estimate to cover underwriting fees, Interest rate lock-in fees, escrow fees, title search and insurance fees, as well as origination fees. This may sound like a lot, but three days should be plenty of time for you to mull over the list of expenses so you are well informed about all the costs associated with your mortgage.
While the Loan Estimate is extremely helpful at detailing all of the costs associated with your home loan, it can be a complex document to understand. Thankfully, a mortgage broker in Oregon can help explain the information contained within the document and help you understand it. In turn, you will be in a better position to make a more informed decision before you close on a mortgage.
Not only can mortgage brokers help you find the best lender, the ideal mortgage product, and help you make sense of your Loan Estimate, but they can also enlighten you on all the unique location-specific details of buying a home in Oregon. Depending on exactly where you plan to buy a home in Oregon, there may be certain taxes or fees that are unique to that area that you may not see elsewhere.
For instance, perhaps there are certain property tax rates or transfer tax rates associated with the city in Oregon that you are buying in; this will impact the overall cost of buying a home and taking out a mortgage. These costs can add up and contribute to your mortgage’s financial burden. But with a mortgage broker to help, you can take these localized costs into consideration.
Taking some time to find a seasoned mortgage broker who works with local lenders is your best bet to finding the best lender and the most well-suited mortgage product for you. Take the time to do your due diligence to find and work with a reputable and trusted mortgage broker in Oregon when embarking on a home purchase transaction.
When you apply for a home loan, there is a limit to how much you can borrow based on type of mortgage you’re taking out and the county that you are buying your home in. If the loan amount you apply for exceeds this limit, the loan will be considered a “jumbo loan.”
Both conventional and FHA loans have their own specific loan caps that are adjusted every year to reflect the increase in home prices.
For VA loans, loan limits were eliminated in 2020. Having said that, some borrowers may still have to abide by loan limits if they have an active VA loan or a previous default on a VA loan.
Check out our mortgage loan limit tool for conventional, FHA, and VA loans.
At Sammamish Mortgage, we strive for a personalized experience for each mortgage applicant. That’s why we employ a full staff of experienced mortgage loan officers, transaction coordinators, processors, and funders.
Mortgage loan processing is all we do, so every member of our team is highly experienced. If your personal loan officer is out for the day, or it’s the weekend, and you need to talk to someone about your loan, someone will be available to you.
Sammamish Mortgage has been in business since 1992 and has assisted many home buyers in the Pacific Northwest. If you are looking for mortgage financing in Oregon State, we can help. Sammamish Mortgage offers mortgage programs in Portland, Salem, Gresham, Eugene, and a plethora of other OR cities.
Contact us if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.
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