Frequently Asked Questions About Mortgage Brokers
Unlike banks or online lenders, mortgage brokers aren’t tied to a single institution — they have access to multiple lending sources, including online loans. They also have access to wholesale rates and special programs. This flexibility allows them to shop the entire market to find the best rates and terms for your specific situation while providing personal service from real people, not call centers.
No. Working with a mortgage broker doesn’t cost you extra. At BMC Keystone, our compensation comes directly from the lender once your loan closes. Because we take your loan application, gather documentation, and perform much of the underwriting work, the lender pays us for those services. The borrower doesn’t pay a separate fee, and because we have access to wholesale rates from multiple lenders, our clients often secure better terms than they could find on their own.
A mortgage broker shops multiple lenders on your behalf to find the best rates and terms, while a lender offers loans from a single source.
Frequently Asked Questions About Mortgage Loans
BMC Keystone offers a complimentary mortgage consultation to help you understand your options and prepare with confidence. We can meet in our Glenside office or make it a phone call. During your consultation, we’ll ask about your plans to get a sense of what you need. Then we’ll talk about:
- Your credit scores and how they affect your interest rate
- How much home you can comfortably afford
- Loan programs and first-time buyer options available in Pennsylvania
- Simple ways to improve your credit profile
- How to get a letter of pre-qualification or pre-approval
Schedule your free consultation using our online form or call our Glenside office at (215) 885-4828.
First let’s clarify a few terms that borrowers often use interchangeably although they are different.
A mortgage pre-qualification is designed to give you an idea of how much money you can borrow or how much a loan will cost you. It is not a guarantee and there is no commitment from the lender to loan the money. A pre-qualification simply means that upon reviewing the financial information provided, the lender believes you will qualify for a loan. You typically do not have to fill out a full mortgage application (1003) or undergo a hard credit check in order to obtain a pre-qualification.
A mortgage pre-approval, or letter of pre-approval, goes further. It is a lender’s conditional commitment to lend you a specified amount of money. A pre-approval letter is a powerful tool to have on hand for house hunting, allowing you to shop with confidence and show sellers that you are a serious buyer. Your provider will likely have you fill out a mortgage application (1003), or fill in sections of the application, in order to obtain a pre-approval.
To obtain either a pre-qualification or a pre-approval, contact a lender or mortgage broker and explain your needs and where you are in the process. They’ll ask for some financial information, such as income, assets, debts, and credit history along with how much money you plan to borrow.
The amount of money required for a down payment will depend on the type of loan among other factors. Here are some guidelines:
Most buyers need minimum payment between 3–5% down for a conventional loan. But a down payment of less than 20% requires the buyer to pay an additional monthly amount for private mortgage insurance (PMI) which can be cancelled later once 20% equity is reached.
FHA loans require as little as 3.5% down but MIP, a monthly mortgage insurance premium, will apply for the life of the loan or until refinanced into a conventional loan.
VA or USDA loans may allow 0% down and do not require any monthly mortgage insurance.
Typical home loans for a purchase transaction can close in as little as 30 days. However, it may be more realistic to plan for 60 days to deal with any issues that arise during the appraisal and title search. Refinance loans often close a bit faster.
We have access to several types of mortgage loans in Pennsylvania for Purchase or Refinance: 1% down loans Family opportunity mortgage FHA/VA Loans FHA Renovation Loans VA Renovation Loans Conventional Renovation Loans USDA Renovation Loans FHA Streamline Refinance Fannie or Freddie MAC Programs Reverse Mortgages DSCR Loans USDA HomePath Jumbo Loans Bank Portfolio Loans (more favorable rates for lower credit score applicants) We also provide assistance with credit issues.