From finding the best interest rate and lowest fees to completing the application and closing the loan on time, mortgage brokers are well-versed in the experience of getting a mortgage. In the current market, it can be smart to work with a mortgage broker, especially if you are buying your first home.

What is a Roseville mortgage broker?

A mortgage broker is a go-between who matches borrowers and mortgage lenders. If you’re buying a home or refinancing, a broker can help you find the best Roseville mortgage broker for your particular needs and situation.

"A Roseville mortgage broker not only helps you get the most competitive rates and pricing, but they also help make sure your loan is a good match with the particular lender," Jason Whigham explains. "They can quickly determine the best lender for each individual borrower."

If you’re seeking an FHA loan or a VA loan, for example, a mortgage broker who has experience working with those loans can simplify the process for you.

Part of a mortgage broker’s job is to "do the math" and tell a borrower what size mortgage they could qualify for, says Jason Whigham, a branch manager at Barrett Financial LLC.

A mortgage broker is not a lender of mortgage funds, however. Brokers originate mortgage loans and place them with lenders, who then disburse the funds at closing.

A mortgage broker has access to more mortgage lenders and products than a bank loan officer, who can only offer mortgages that the bank offers.

What does a mortgage broker do?

A mortgage broker works with everyone involved in the lending process—from the real estate agent to the underwriter and closing agent—to make sure a borrower gets the best loan and the loan closes on time.

A Roseville mortgage broker can work independently or with a brokerage firm. Mortgage brokers research loan options and negotiate with lenders on behalf of their clients. A broker can also pull the buyer’s credit reports, verify their income and expenses, and coordinate all of the loan paperwork.

Many Roseville mortgage brokers also have access to a powerful system for figuring out how much a mortgage loan will cost from all the lenders at the same time. This speeds up and simplifies the process.

The pros of working with a mortgage broker

• A Roseville mortgage broker can help you save on fees by: When you obtain a mortgage, you’re likely to be charged an origination fee, an application fee, an appraisal fee, and more. A mortgage broker may be able to get the lender to waive some or all of those fees.
• A Roseville mortgage broker can save you money on the loan itself: Brokers have access to a broader assortment of loans and lenders and may be able to find a better deal than you could get for yourself.
• A Roseville mortgage broker can save you time. Brokers can do all the research on rates and fees; they negotiate for you and keep the mortgage process on track.
• A Roseville mortgage broker can save you from making a big mistake. Brokers can help you avoid pitfalls because they know the mortgage industry, the differences among lenders, and the twists and turns in the mortgage process.
• A mortgage broker can find the right lender for tricky situations: If your credit history isn’t great or the property, you’re buying is unusual, a broker can find a lender who has more flexibility with credit scores and down payment amounts or who specializes in certain types of properties.

The cons of working with a mortgage broker

• Not all lenders work with mortgage brokers, and brokers may not have access to all loan programs at certain financial institutions.
• You might have to pay the broker. Before hiring a mortgage broker, ask how they get paid. Usually, the lender pays the broker fee, but sometimes the borrower does.
• There is potential for conflict of interest: If a lender pays a mortgage broker a commission, the broker could favor that lender, and you might not get the best deal available.
• A broker’s estimate may not represent the final terms of the deal. Based on the information in your application, the lender may charge a higher rate or fees, and the cost of your loan may be higher than what you expected.

How does a mortgage broker get paid?

The mortgage lender usually pays the mortgage broker a fee or commission after the loan has closed. Some brokers charge the borrower directly instead of the lender; in these cases, it’s typically a flat fee that can be financed with the mortgage or paid at closing.

How much does a mortgage broker cost?

The broker’s commission (which is usually paid by the lender) varies, but it typically ranges from 0.50 percent to 2.75 percent of the loan principal. Federal law caps broker fees at 3 percent and requires that they not be linked to the interest rate on a loan.

"Most brokers do not charge the borrower anything at all in most scenarios," says Weinberg. "The compensation paid to the broker by the lender does not add a penny to the borrower’s closing costs, just like the compensation paid by the big banks to their borrowers' loan originators doesn’t add to your closing costs."

"Prior to the 2008 economic downturn, consumers didn’t see how much a broker got paid, but in today’s mortgage climate, the cost of the loan is charged to the borrower, and the lender purchasing the loan provides a credit equal to that cost, resulting in no cost to the borrower," adds Whigham.

In the few instances where a broker does charge the borrower for their services, borrowers can expect to pay a fee between 1 percent and 2 percent of the loan principal. Before you commit to working with a broker, ask about fee structure and what you might be responsible for paying, if anything (more on that below).

Roseville mortgage broker vs. lender vs. Roseville loan officer

The difference between a mortgage broker and a lender is that a broker doesn’t lend the funds for mortgages. Rather, brokers originate and close mortgage loans between lenders and borrowers. Brokers partner with a variety of lenders, including commercial banks, credit unions, mortgage companies, and other financial institutions, and can work independently or with a brokerage firm.

In contrast, a Roseville loan officer is employed by a bank, credit union, or other lender and is limited to providing the loan products their employer offers. Generally, loan officers assess borrowers and either authorize or recommend approval for loans.

A loan officer might not be as knowledgeable as a broker. Mortgages are a mortgage broker’s daily bread, but a loan officer could be handling other types of loans, too, and may not be as familiar with mortgage loans as a mortgage broker is.

In addition, a borrower who gets a mortgage straight from a commercial bank could end up paying more because of the bank’s overhead. Instead, a broker might be able to get you a loan with a better rate from the bank’s wholesale division.

Still, banks often contend that they’re a better go-to for a mortgage, especially for borrowers who have been with the same bank for a long time, and that they’re more secure because they have heftier portfolios.

Questions to ask a Roseville mortgage broker

Before you get too far into the process with a mortgage broker, ask these key questions:

How much do you charge, and who pays your fee?

• The lender usually pays the mortgage broker, but sometimes the borrower does. Broker fees can show up on the loan estimate or closing disclosure in several ways, so get clear on this ahead of time to avoid surprises at closing.

Which Roseville lenders do you work with?

• Most mortgage brokers have a stable of lenders they work with, and not all brokers work with the same lenders. If you’re eyeing a VA loan and the broker doesn’t work with VA lenders, for instance, that broker is likely not the best fit for you.

How much experience do you have?

• As a rule of thumb, choose a mortgage broker who has been in the industry for at least three years. If you’re interested in a specific type of loan, ask the broker how much experience he has with that type of loan.

Your Steps to Roseville Homeownership with CalHFA

Step 1

Learn about CalHFA’s financing options and eligibility requirements.

Eligibility

My-Down Payment: Calculator

Most people borrow the large amount of money they need to buy a home. This type of borrowing is called a first mortgage loan. There are also mortgage loans that can help with the down payment or closing costs, called junior loans. CalHFA has first- and junior-lien loan options for low- to moderate income families, including low- to zero interest down payment assistance loans. CalHFA does not accept loan applications directly. A CalHFA approved lender will qualify you for a home loan, so you will need to apply with one of our Preferred Loan Officers or approved lenders. 

You’ll also want to look at our income limits and other eligibility criteria. You can find out more by clicking on the "Borrower & Property Eligibility" tabs above. Another option is to use our Eligibility Calculator to see what programs are right for you.

Don’t forget to check with your local housing authorities and agencies for other financing options.

Step 2

Talk to a CalHFA Preferred Roseville Loan Officer to get pre-qualified for a loan amount.

After determining if you are eligible for a CalHFA home loan, the next step is to speak to a knowledgeable loan officer and get pre-qualified to determine how much of a loan you can afford. You may also use a prequalification calculator to get an idea of where you stand financially before contacting one of our preferred loan officers. Click on the "Find a Loan Officer" tab above to contact a loan officer in your area.

Step 3

Attend a homebuyer education course if you are a Roseville first-time homebuyer.

If you are a first-time homebuyer and have been pre-qualified, you must attend a homebuyer education course. This education will help you understand the importance and responsibilities of homeownership. In order to obtain a CalHFA home loan, your loan officer must produce your certificate of completion from one of the following entities:

• ONLINE: You can take eHome's eight-hour Homebuyer Education course online.
• (Fee: $99)
• In-person: face-to-face homebuyer education through NeighborWorks America or any HUD-approved housing counseling agency.
• (Fees vary depending on the agency.)

Step 4

Start looking for a home.

Talk to a local Realtor to guide you through this process.

Once you’ve found a home that fits most of your needs and is in your price range, make an offer through your real estate agent. If your offer is accepted, congratulations! If not, don’t lose heart and don’t feel pressured into making an offer that’s outside your budget; there are other homes just waiting for the right new owner.

My-Down Payment: Frequently Asked Questions (FAQs)

1. Do I qualify for CalHFA programs?
2. Check out the information under the Borrower Eligibility tab above to find out if you are eligible.
3. What is the credit score requirement?
4. The credit score requirements will vary for each program, but the minimum score is between 640 and 680, depending on some other factors. A preferred loan officer can look at your finances and tell you what score you need to get in order to be eligible.
5. What programs are available?
6. CalHFA offers a variety of first mortgage and down payment assistance programs. You can find details on all these programs under the Loan Programs section.
7. What is the interest rate?
8. Interest rates will vary depending on your financial circumstances, lender fees, and other factors. Interest rates can also change daily. We recommend that you check with a loan officer to receive an accurate rate quote.
9. What are the income limits?
10. Income limits vary according to the program and the county in which the property is being purchased. It's best to review the individual program descriptions to determine the income limit in your area. You can find details on income limits in the borrower requirements section of each program description.
11. Does CalHFA have sales price limits for the home I want to buy?

Best Roseville Mortgage Broker

Your Steps to Homeownership with CalHFA

Step 1

Learn about CalHFA’s financing options and eligibility requirements.

Eligibility

Calculator

Most people borrow the large amount of money they need to buy a home. This type of borrowing is called a first mortgage loan. There are also mortgage loans that can help with the down payment or closing costs, called junior loans. CalHFA has first- and junior-lien loan options for low- to moderate income families, including low- to zero interest down payment assistance loans. CalHFA does not accept loan applications directly. A CalHFA approved lender will qualify you for a home loan, so you will need to apply with one of our Preferred Loan Officers or approved lenders (see Step 2). You can find details about CalHFA mortgage loans by clicking the "Loan Programs" tab above.

You’ll also want to look at our income limits and other eligibility criteria. You can find out more by clicking on the "Borrower & Property Eligibility" tabs above. Another option is to use our Eligibility Calculator to see what programs are right for you.

Don’t forget to check with your local housing authorities and agencies for other financing options.

Step 2

Talk to a CalHFA Preferred Loan Officer to get pre-qualified for a loan amount.

After determining if you are eligible for a CalHFA home loan, the next step is to speak to a knowledgeable loan officer and get pre-qualified to determine how much of a loan you can afford. You may also use a prequalification calculator to get an idea of where you stand financially before contacting one of our preferred loan officers. Click on the "Find a Loan Officer" contact loan officer Jason Whigham in your area.

Step 3

Attend a Roseville homebuyer education course if you are a first-time homebuyer.

If you are a first-time homebuyer and have been pre-qualified, you must attend a homebuyer education course. This education will help you understand the importance and responsibilities of homeownership. In order to obtain a CalHFA home loan, your loan officer must produce your certificate of completion from one of the following entities:

• ONLINE: You can take eHome's eight-hour Homebuyer Education course online.
• (fee: $99)
• In-person: face-to-face homebuyer education through NeighborWorks America or any HUD-approved housing counseling agency.
• (Fees vary depending on the agency.)

Step 4

Start looking for a home.

Talk to a local Realtor to guide you through this process.

Once you’ve found a home that fits most of your needs and is in your price range, make an offer through your real estate agent. If your offer is accepted, congratulations! If not, don’t lose heart and don’t feel pressured into making an offer that’s outside your budget; there are other homes just waiting for the right new owner.

My-Down Payment: Roseville Mortgage Broker Frequently Asked Questions (FAQs)

1. Do I qualify for CalHFA programs?
2. Check out the information under the Borrower Eligibility tab above to find out if you are eligible.
3. What is the credit score requirement?
4. The credit score requirements will vary for each program, but the minimum score is between 640 and 680, depending on some other factors. A preferred loan officer can look at your finances and tell you what score you need to get in order to be eligible.
5. What programs are available?
6. CalHFA offers a variety of first mortgage and down payment assistance programs. You can find details on all of these programs under the Loan Programs section.
7. What is the interest rate?
8. Interest rates will vary depending on your financial circumstances, lender fees, and other factors. Interest rates can also change daily. We recommend that you check with a loan officer to receive an accurate rate quote.
9. What are the income limits?
10. Income limits vary according to the program and the county in which the property is being purchased. It's best to review the individual program descriptions to determine the income limit in your area. You can find details on income limits in the borrower requirements section of each program description. Does CalHFA have sales price limits for the home I want to buy?

Roseville


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