Category: Mortgage Broker

How Can a Mortgage Broker Help You

Post author By Ahmad Azizi, Branch Manager at Option Funding, Inc.
Post date May 30, 2023

As exciting as it can be to buy a new home and dream about the adventure you will have and the future memories that will be made there, all the new terms can be confusing.

For instance, a mortgage broker.

A mortgage broker could play a significant role in your home-buying process. So, what are they? What do they do? Where can you find one? How can a mortgage broker help you?

Before you go any further on your quest, let’s talk about mortgage brokers.

What is a Mortgage Broker?

If you have put forth any effort to find a lender, then you know it can be tough to decide where to start. After all, all lenders are not created equal. There are hundreds of lending institutions that each have their criteria for borrowers. The idea of trying to find the right fit for your situation and needs can be a bit overwhelming.

In its simplest definition, a mortgage broker acts like a middleman. They work with many different lenders on your behalf to find the right lender for you. When you apply and are approved, the mortgage broker becomes the originator of the loan.

A good mortgage broker will have a large network and an understanding of the application criteria for many lenders. This means staying on top of competitive rates and prices, too. They will easily be able to link you with a lender that is the best fit.

You can expect your mortgage broker to:

Simplify the loan process
Help you determine the size and type of mortgage you will qualify for
Have a wide variety of mortgage options for you to choose from

Your mortgage broker will charge a commission fee for their services, but it is worth noting that this fee is often paid by the lender – not the borrower.

Is a Mortgage Broker a Lender or Loan Officer?

No. The roles of a mortgage broker, a lender, and a loan officer are all different and distinct.

Mortgage brokers do not lend money to borrowers. Instead, they link them with the funds. They are considered the originator of the loan and they close mortgages, but they do not lend the actual funds. The funds come from the lender.

A loan officer is an individual that works for the bank. They work with borrowers looking to take out a mortgage, but they are only able to offer the loan products that their financial institution offers. Due to this limitation, loan officers are often not as well-versed as mortgage brokers when it comes to getting borrowers a mortgage that fits.

Advantages of Working with a Mortgage Broker

Many new homebuyers find themselves working through the tedious loan application process – spending a lot of time and not even knowing if they will get approved by the lender. Getting rejected can have a slight impact on your credit, but it can have a bigger impact on you.

Your time is precious and finite. And your hopes and dreams of your future home are right in front of your eyes. Working with a mortgage broker means that you will no longer need to work through multiple applications hoping to get approved by at least one. Or put all your energy into one – only to get rejected because it wasn’t a good fit.

Take advantage of working with a mortgage broker.

Save money

In some cases, mortgage brokers may be able to help you save money by getting the lender to waive some of the fees that are charged when taking out a mortgage, such as the application fee, appraisal fee, and origination fee, which can save you hundreds, sometimes thousands, of dollars.

Save Time

As previously mentioned, you can save time with a mortgage broker. You won’t have to worry about doing all the heavy research or applying with multiple lenders.

Get the Right Loan

When you have the right mortgage to fit your situation and needs, you can also save money. Not every loan is right for every borrower – and choosing the wrong loan can cost you down the road. Mortgage brokers match you with a loan that is the best fit for you.

If you have special circumstances, such as poor credit, unique income, or a property that is out of the ordinary, you may have trouble gaining loan approval with all types of lenders. A mortgage broker will know the right lender for your circumstances.

Choosing the Right Mortgage Broker

You will want to choose a mortgage broker that is knowledgeable and experienced in the field – which means they will have a lot of knowledge about available loans from different lenders.

To find the right mortgage broker, do your research. You can always ask your friends, family, or realtor for referrals. Or do an online search. Just be sure to do your own research once you have the names. You want to make sure that the broker’s goals align with yours.

Read reviews, ask questions, and get a feel for the mortgage broker before you move forward. Since you are the borrower, you have the choice of finding the person you feel comfortable with – and want to work with.

Learn About Your Mortgage Options at Option Funding

Are you ready to invest in your new home? Are you overwhelmed with where to start? Having a pre-approval in hand before you begin your search can give you the greatest advantage when competing with other offers. And having the right team on your side can give you access to the best mortgage options.

That team includes Ahmad Azizi and the entire team at Option Funding, Inc.

We are a direct lender and a mortgage broker. That means we have access to a variety of mortgage options and are sure to find one that is perfect for your needs. This allows Ahmad Azizi to close 95% to 100% of all deals that come his way.

If you are ready to see what your options are – from the one who has many to choose from – contact Ahmad today!

Mortgage Broker

How to Find a Good Mortgage Broker

Post author By Ahmad Azizi, Branch Manager at Option Funding, Inc.
Post date April 14, 2023

If you are in the market for a new home or are interested in investing in any type of real estate, then there is a good chance you have already overwhelmed yourself with the loan application process. A process that, at times, can be tedious and somewhat confusing.

So, what do you do?

Maybe you have heard of a mortgage broker – or maybe not. Either way, this is your answer. A mortgage broker will help you to secure a loan that fits your situation and goals without having to put in the work.

As with anything, don’t just choose anyone. Here’s how to find a good mortgage broker so you get the best results.

What is a Mortgage Broker?

A mortgage broker is like a middleman between you and your future lender. They take on the role of looking at the different mortgage options and comparing them based on your needs. They handle all the applications, document collection, pulling of your credit history, and so forth. They will even negotiate terms for you.

This is all done in a short time period – especially when compared to doing it yourself.

A mortgage broker will take the time to get to know you and what your needs and hopes are for the new loan. For instance, knowing what your short-term and long-term goals are can help them determine the best route for securing the perfect loan.

It is worth noting that a mortgage broker is licensed and regulated by the federal government.

Benefits of Using a Mortgage Broker

If you are on the fence about using a mortgage broker, you may want to just go ahead and take the leap. Mortgage brokers have a lot to offer those who are looking to buy a new home or invest in property, including:

Mortgage Options

When you work with a broker, you have options. They provide you with access to various types of loans through many different lenders. You are then able to find the loan that works for you – along with the best interest rate, too.

Time-Saving

If you have ever filled out a loan application just to get denied, then you know how easily you can waste time in the home-buying process. With a mortgage broker, you fill out one form and can apply to multiple loans all at once.

Find the Best Loan Offer

When you get your approvals, your mortgage broker will go ahead and compare them for you so that you can easily see all the important details of the loan offers and choose the one that benefits you most.

Access to Expert Advice

A Mortgage Broker, such as Option Funding, Inc., can help identify which loan program is best suited for you and can also be a great source of information. They can answer any questions you may have, explaining to you what various terms mean, what closing costs are, etc.

Tips for Finding a Good Mortgage Broker

To find a good mortgage broker, you are going to want to do your due diligence. Remember, this is the individual that is going to help you to secure a large loan to purchase real estate. Therefore, you want it to be someone, such as Ahmad Azizi, who is going to take into consideration your current and future situations, your goals, your limitations, and so on.

Ask Locally

If you are using a real estate agent, you can always ask for recommendations for mortgage brokers. Friends, family, colleagues, and neighbors are also great potential sources of information when it comes to finding a mortgage broker. Ask around and see if anyone has any referrals in mind – and be sure to ask about their experience, too.

**Do a Smart Online Search**

Take some time to look online and see if you find a mortgage broker that meets your needs. Just be sure to do your research first. Be sure to confirm their licensing and check out their reviews, testimonials, etc. The more you search, the more information you will find, and will be able to make an informed decision.

Meet With Potential Mortgage Brokers

It is always a good idea to meet with the mortgage broker before deciding to move forward. Keeping in mind the large role they are going to play in your home-buying process will convince you just how important this step is.

Put together a list of questions, such as:

How many lenders do you work with?

Do you think you can get me a loan like I am looking for?

Have you ever worked with borrowers in my situation?

How much do you charge?

How long will this process take?

Choose Your Broker

Based on the answers you get and the comfort of the interaction, you can decide which mortgage broker you believe to be the best fit for you.

Mortgage Options at Option Funding, Inc.

If you have a dream of buying a new home, you are going to need a mortgage. At Option Funding, Inc, we are BOTH a Direct Lender and Mortgage Broker. Therefore, Ahmad Azizi can help identify the best lender for your situation. This gives him the ability to close 95% – 100% of deals that come his way because he can offer a multitude of loan and mortgage products. By working with Ahmad Azizi you’ll have access to multiple lenders. This can give you more flexibility, especially if your circumstances mean that you don’t fit into a category typically recognized by lenders.

By the time you close on your new property, you will not only feel good about moving into the home you’ve always wanted, but you can feel good about your loan, too.

To see what your options are, contact Ahmad today!

Loan Officer Mortgage Broker

Mortgage Broker vs Loan Officer: What’s the Difference?

Post author By Ahmad Azizi, Branch Manager at Option Funding, Inc.
Post date October 11, 2022

Do you know what the difference is between a mortgage broker vs loan officer?

When it comes to investing in a piece of property, the entire process can leave your head spinning – especially if you are a first-time buyer. There are many steps, quite a few different people involved, deadlines to meet, inspections to be done… and the list keeps going. Plus, if you intend to take out a mortgage to purchase the property, how do you know where you turn?

You have to make a choice of whether to use a mortgage broker or loan officer. This is a crucial step in the whole loan process. On the surface, both of these individuals may appear to do the same thing. But a deeper dive will show you that they are, in fact, very different. Let’s take a look.

Mortgage Brokers

The role of a mortgage broker is to get you the best loan for your real estate purchase – and that means one that is a perfect fit for you. They have access to loans from many different lenders and, thus, many different loans. They work with banks, credit unions, and other financial institutions/mortgage lenders.

Linking Lenders and Borrowers

In their role, mortgage brokers act as liaisons and bring together the lender and the borrower. These individuals may work for a brokerage firm, or they may work on their own. In other words, when you work with a mortgage broker, you work with a third party. And while this may make you hesitant, it can actually be very beneficial. After all, you will have access to loans from different lenders – which can land you some great deals.

The Power of a Network

What’s more, everyone has a different situation. One borrower may have polished credit, verifiable income, a good debt-to-income ratio (DTI), and even money sitting in the bank for a down payment. Another borrower may have the income and the down payment but not the best credit. And still, another borrower may not have any of these things. But because a mortgage broker has a large network of lenders and familiarity with their requirements, they can save you a lot of time in finding a loan. Filling out loan applications can be very tedious and time-consuming. And going through this process on your own with lenders you aren’t even sure will approve you can be very frustrating.

So, How Do They Get Paid?

Mortgage brokers receive a commission for their services from the borrower or the lender. Sometimes both. The borrower needs a loan, the lender wants more approvable clients, and the broker brings them together for a fee. This commission is referred to as the origination fee, and it is roughly between 1% and 2% of the loan amount. This will be disclosed upfront.

Loan Officers

A loan officer works directly for a financial institution and is also referred to as the mortgage lender. You would apply for a mortgage through them, whether a bank, credit union, or online financial institution, and, if approved, be offered any of the products they offer. You won’t have the opportunity to access different products from other lenders with a loan officer because, remember, this person is an employee of one particular finance.

Developing Relationships

Because you are working with the lender itself, you will be able to develop a relationship with them over time – for as long as you make your mortgage payments. Note that you won’t encounter any brokerage fees since you aren’t working with a broker, but you will still have an origination fee.

Ability to Choose Your Mortgage Company

If you decide to work with a loan officer, then you have control over choosing just what mortgage company you want to work with. While this may seem like the perfect choice, it also means that you will have to go through the entire application process, gathering all the necessary documents needed, without any guarantee of loan approval. And this can be a time-consuming process. If you are only applying for one loan at a time, you may waste a lot of time. Yet, applying for more than one can be overwhelming. It also means more marks on your credit.

Any downfalls with working directly with the lender aren’t because of the loan officer but the overall process itself. Deciding if this is the route for you should be backed with a lot of research before you take the first step.

Let’s Recap

A mortgage broker does not work for a lender. In fact, they may not work for anyone. These individuals work independently or may work with a mortgage brokerage firm. Mortgage brokers are not stuck working with one lender, which gives them the freedom to find you the best rate amongst a long list of lenders.

A loan officer is someone who works for the lender and can only provide loans through the lender they work for. Depending on your situation and the current market, a loan officer may potentially be able to get you a reduced rate or provide you with down payment assistance programs.

Mortgage Broker vs Loan Officer: What is Right for You?

A home is one of the biggest investments you will make. So, when it comes to a mortgage, you want to make sure you are getting the best deal possible.

So, who do you choose to work with? The answer is quite personal. But by doing your own research on a mortgage broker vs loan officer, you’ll be able to narrow down the best fit.

If you have a relationship with a particular financial institution and you want to stick with them – or apply to – then you may want to contact their loan officer. On the other hand, if this is your first time purchasing real estate, you may find that you don’t know where to turn. You may not understand the process, which lender caters best to your situation, or the documentation needed to make it happen. Or you may even be under time constraints and want to be sure you get the best rate – without wasting precious time. A mortgage broker can guide you through the process and connect you with the lenders that will appeal most to your situation. This may be the best option.

Apply for Mortgages and Loans at Option Funding Inc

Are you looking for mortgage programs or loan options? Contact us today at Option Funding Inc in Westlake Village, California. Branch manager Ahmad Azizi and his team of mortgage brokers and loan officers can help you find the perfect home loan today!