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- Real Estate Broker vs Agent vs Realtor
- How do I become a commercial mortgage broker | Gelt Financial
- 5 Reasons not to get a Reverse Mortgage
- INTEREST ONLY vs REPAYMENT MORTGAGES
- Can You Get Approved for Home Loan with Bad Credit?
- VA To Cover Late Mortgage Payments For 60K Homeowners
- Mortgage Broker Basics – Part 1
| Real Estate Broker vs Agent vs Realtor Posted: 17 Dec 2020 03:46 AM PST [sg_popup id=1920] Understanding your agent optionsThe real estate world can be confusing. There are many different people with many different titles involved. There are agents, inspectors, appraisers, and attorneys — to name just a few. When it comes to the roles of a real estate professional, the lines can get blurred. One reason for this is because oftentimes, people confuse the terms real estate agent, broker, and Realtor. Although similar, these terms are not interchangeable. Understanding the difference between a Realtor and a real estate agent, as well as a real estate broker, can provide clarity on the type of real estate professional that best suits your needs. Check today’s mortgage and refinance rates (Dec 17th, 2020) In this article (Skip to…) What is a real estate agent?A real estate agent is someone licensed to help people buy or sell property. To obtain a real estate license, agents must complete anywhere between 30 to 90 hours of classroom instruction. Applicants must also pass a licensing exam that covers local and national real estate law, standards, and practices. All real estate agents must pay an annual licensing fee. Agents are required to renew their licenses every one or two years, depending on the state. In most states, agents must complete a certain amount of continuing education courses before their licenses can be renewed. What is a Realtor?'Realtor' is a trademarked term that refers to a real estate agent who is an active member of the National Association of Realtors (NAR), the largest trade association in the United States. As part of their NAR membership, Realtors gain access to discounts, educational materials, and other career development resources.
However, they do not have any legal privileges or rights beyond those of a licensed agent. Bound by a code of ethics, Realtors promise to be transparent and honest and to uphold their clients' best interests in all transactions. Real estate agent vs. RealtorThe terms "Realtor" and "real estate agent" are sometimes used interchangeably. But they are not quite the same. The main difference between a real estate agent and a Realtor is that Realtors are active, paying members of the National Association of Realtors (NAR). When it comes to helping home buyers and sellers, there is generally no difference between the duties a real estate agent or Realtor will perform. But "Realtor" doesn't just refer to someone who helps you buy or sell a house. The title can actually apply to a number of different real estate professionals, including:
This means that while a Realtor can perform the same duties as a real estate agent, not all of them do. Realtors may specialize in some other part of the home buying or selling process. But as far as home buyers and sellers are concerned, they can hire a Realtor or real estate agent to help them close their transaction and either one will get the job done. Verify your home buying eligibility (Dec 17th, 2020) What is a real estate broker?In most cases, a real estate broker is generally considered to be a step up from a real estate agent. Brokers may perform the same duties as a real estate agent or Realtor. But they're typically more experienced with a higher level of education and stricter licensing requirements. Unlike real estate agents, someone who holds a broker's license can open their own real estate brokerage to represent buyers and sellers in real estate transactions. Brokers often work as independent agents or start their own brokerages and hire other real estate agents and Realtors to work for them. When you work with an agent to buy or sell your home, you're actually working with someone who is employed by a real estate brokerage. In effect, you're hiring the agency to help you through the process, with the agent acting as the firm's representative. Comparing real estate professionalsWhen the real estate market heats up, as it did in 2020, it's not uncommon to see a spike in the number of licensed real estate professionals. With such a large number of agents — and various titles they hold — the average home buyer may find it tough to choose one over another. We spoke with Wendy Gavlin Chambers, Associate Broker of Atlanta Communities, to get some clarity on how borrowers can think about real estate brokers vs. agents vs. Realtors. Chambers is not only a licensed real estate agent. As an active member of NAR, she's also a Realtor. And she is a licensed broker, with six accreditations and a team of both buyer and seller specialists. Chambers says the additional certifications don't mean your agent will have more access to information (like home listings).
But a higher level of education means your agent may be better equipped to handle challenges or surprises that come up. They're likely to be very familiar with every stage of the home buying or selling process and able to move everything along smoothly. "Having additional accreditations, as well as being an associate broker, shows my clients that this is a career for me," says Chambers. "By investing in myself with additional education and certifications, I'm investing in a higher level of professionalism." That doesn't mean an agent without a Realtor or broker designation will do a lesser job. Those titles may give clients extra confidence — but at the end of the day, you should work with someone who comes highly recommended and has local expertise in your area. Does one type of agent cost more than another?Fortunately for buyers and sellers, having an agent with additional certifications doesn't mean you'll have to pay them more to represent you. Real estate agents work on commission, typically earning 5% to 6% of the sale price on a transaction. This is often split between the buyer's agent and the seller's agent. Luckily for the buyer, the seller typically pays the agent commission for both their own and the buyer's agent. Commissions can vary by agent or brokerage, but won't necessarily be higher or lower because of their title. So shop around to find an agent that's both highly regarded and fairly priced when you're selling a home. Real estate broker vs. agent vs. Realtor — which is right for you?As a homebuyer, credentials can be important. But, there's more to it. Look for a real estate professional who's an expert in your area and the type of home you want to buy or sell. Make sure they also ask the right questions, such as:
Other qualities of a great agent include good listening skills and strong negotiating skills. When in doubt, do your due diligence. Ask for referrals, read online reviews, and remember, you don't have to go with the first agent you find. By spending a small amount of time interviewing agents, you're more likely to find just the right person to fit your needs. [sg_popup id=1920]  |
| How do I become a commercial mortgage broker | Gelt Financial Posted: 17 Dec 2020 03:19 AM PST
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| 5 Reasons not to get a Reverse Mortgage Posted: 17 Dec 2020 12:32 AM PST
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| INTEREST ONLY vs REPAYMENT MORTGAGES Posted: 16 Dec 2020 10:44 PM PST
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| Can You Get Approved for Home Loan with Bad Credit? Posted: 16 Dec 2020 06:01 PM PST
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| VA To Cover Late Mortgage Payments For 60K Homeowners Posted: 16 Dec 2020 11:04 AM PST [sg_popup id=1920] The VA's new mortgage relief planOn December 10, the Department of Veterans Affairs proposed a new mortgage relief plan to help veteran homeowners who are behind on loan payments. The VA's new plan is targeted at VA loan holders who have struggled financially due to COVID-19. Its goal is to help them transition smoothly out of forbearance and back into regular mortgage payments. To achieve this, the VA plans to cover missed payments on up to 60,000 VA mortgages that were put on hold due to COVID. If that applies to you, here's what you should know about the VA's proposal. Check today’s VA loan rates (Dec 16th, 2020) The VA plans to help homeowners in forbearanceThe VA's proposed mortgage relief plan is called the COVID–19 Veterans Assistance Partial Claim Payment Program. If adopted, this plan will ease the repayment process for veterans and service members who have gone into loan forbearance. VA loan forbearanceAs a reminder, forbearance is when a homeowner agrees with their mortgage servicer to stop making home loan payments — or reduce them — as a result of COVID-19-related hardship. Under the CARES Act, those with VA loans are able to request home loan forbearance until at least December 31. But forbearance doesn't stop money from being owed. It just delays payments. When the forbearance period ends, the missed amount still has to be repaid. Loan repayment after forbearanceSince the missed mortgage payments have to be made up, borrowers who have taken advantage of VA loan forbearance will face extra debt once they're back on their feet. Missed payments during forbearance can typically be repaid in a variety of ways.
Many homeowners will not be in a position to repay additional debt, on top of regular mortgage payments, when forbearance ends. That's where VA assistance comes in. The VA wants to provide homeowners with a highly affordable way to get back on track with their mortgage payments after COVID. How veteran mortgage relief would workThe idea is that the VA will repay debt accrued on VA loans while in forbearance, through the December 31 deadline. But the money offered by the VA is not a gift or grant. Homeowners will still owe the money. But they'll repay the VA instead of the mortgage lender. And the VA plans to offer very lenient terms for repayment.
Thanks to the VA's low-interest-rate offer, this would be a more affordable way to repay mortgage debt than paying it back to a lender at standard mortgage rates. Homeowners would also have the option to defer their debt to the VA — meaning they don't have to start making payments — for up to 5 years. But be aware that if you choose to defer repayment, your payments will be higher once you start paying because the loan from the VA will accrue interest during that time. Loan relief in the form of a second mortgageUnder this plan, the new loan would be in the form of a second mortgage. In other words, it would be a secured loan, with your home acting as collateral. But don't think of this particular second mortgage as a way to access cash. Because it's not a traditional home equity loan or home equity line of credit (HELOC). The most you can borrow is the sum that you owe as a result of forbearance. And that will go straight into your mortgage account. If a borrower were to fall seriously behind on their repayment to the VA, they could risk foreclosure. However, the VA says, "One of the primary goals of VA's Home Loan Guaranty Service is to help veterans who use their guaranteed loan benefit retain their homes and avoid foreclosure." In many cases, the VA will do all it can to help borrowers make payments and stay in their homes. Who might be eligible for assistance?Under the VA proposal, the new program is seen as a last resort. So, if there are existing assistance options open to you, you may have to take them. But, if you owe money due to forbearance, and you and your mortgage servicer agree the VA's proposal is the best way forward, you're likely to be in — subject to a few conditions. These conditions include:
In addition, you must have been in good standing with your VA loan prior to the COVID pandemic. Borrowers must have been less than 30 days late (preferably on time) with their mortgage payments as of March 1, 2020. These conditions should all be low bars for most applicants. How to apply for the new VA mortgage relief planRemember, the VA's new relief plan is not available yet. It's still in the proposal stage. But keep an eye on the VA to see when it will be passed. Once it's available, veteran homeowners will apply for VA loan relief through their mortgage servicers. The servicer should get everything set up. Unlike with a new mortgage or refinance, there's no point in shopping around for the best deal. That 1% interest rate is set by the VA and is invariable. The documentation process should be easier than when you got your existing VA loan. But you will have to provide documents to show you meet the loan's conditions (see below). And there'll be some signing to do. After you're approved and the new loan is in place, you simply pay your mortgage servicer each month for both your first and second mortgages. The servicer would collect and distribute payments to the VA. What if you still need forbearance?When legislators passed the CARES Act back in March, most assumed the pandemic would effectively be over by December 31, 2020. But at the time this was written (in mid-December), it was worse than ever. Some borrowers will just now be starting to need forbearance. And others will only be only partway through requiring it. Mortgage servicers are still highly likely to provide VA loan forbearance after December 31. But any forbearance obligations after that date won't be covered by the VA's current relief proposal. So work with your servicer to agree on a realistic repayment schedule. Still, there's a real chance the VA will later update its policies to help those who acquire forbearance debts in 2021. When will the VA's new plan start?There is no official start date for the VA's new mortgage relief program yet. At the time of writing, it's just a proposal and is yet to be approved. The VA has asked interested parties for comments by January 8. And it currently proposes a closing date for new applications of September Assuming the program is approved, watch out for a launch announcement in January. [sg_popup id=1920]  |
| Mortgage Broker Basics – Part 1 Posted: 16 Dec 2020 10:36 AM PST
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