Mortgage Brokers Find Alternative Home Loan Solutions

by Karen Lawson
Loan Page Columnist

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When you're looking for a mortgage loan, you might think of applying at your bank. That's where your accounts are, and they also issued your credit card. But if you're self-employed, credit-challenged, or otherwise may not qualify for a "traditional" home loan, a mortgage broker can help you find a home loan that meets your unique needs.

Outside of the Box: Home Mortgages for Unusual Situations

Many people don't meet traditional qualifying requirements for a new home loan, and for first-time buyers, this can be especially challenging. But if you're one of these people, mortgage brokers will work with you and multiple lenders to find the best loan for your circumstances.

A mortgage broker can assist borrowers who:

» Are credit challenged (late payments, bankruptcy, charge-offs)
» Have not established credit
» Cannot meet traditional documentation requirements
» Are recent immigrants
» Are self-employed or business owners

Mortgage brokers assist people from all walks of life. Their mission is to find the best possible loan at the lowest rate for their clients' individual situations.

Who Pays the Mortgage Broker?

As interest rates continue to rise, you want to be certain that you aren't paying unnecessary costs as part of your mortgage transaction. Some mortgage brokers charge a fee that is added to your interest rate. Others are paid directly by the lender who originates your new home loan. When shopping for a mortgage broker, make sure you understand how the broker's fee will be paid.

If you're working with a real estate agent, he or she may refer you to a mortgage broker. As with any other service provider, it's wise to check the credentials of mortgage brokers before doing business with them. A reputable mortgage broker knows the ropes, and can help you find the mortgage you need at a price you can afford.

If you don't qualify for a traditional mortgage loan, don't worry. Mortgage brokers and lenders want your business, and can help you buy your first home.

About the Author
Karen Lawson has more than fifteen years of experience in mortgage banking. She earned an MA degree in English from the University of Nevada, Reno.

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