How To Find A Mortgage Broker
Thinking about buying a new home or refinancing your current one? Then you should know that one of the first steps could be to find a good mortgage broker. Let’s face it. The mortgage process can be confusing and the application procedure is daunting. So having someone that can help you navigate the process that is trustworthy and knowledgeable could make your life much easier.
Buying a house is typically the largest purchase of your lifetime. It is important to have people on your team that you can rely upon. The main players on your house search team are your realtor, but also a mortgage lender.
In today’s digital age, there are so many online lenders, banks and mortgage brokers who are all vying to capture your attention and get your mortgage application. Some lenders have noncompetitive interest rates and/or charge high fees. It is always best to shop around. Many borrowers will start at their own bank or credit union and see what kind of deal they can get, while others may rely on referrals from their realtor, family or friends.
Ultimately, you are looking for a competitive rate and professional service. Keep in mind that no matter how careful you are in choosing your mortgage broker, once the deal is done the company has the right to sell your loan to a third-party. Although everything remains the same as far as deal terms, it may be a different servicer of the loan to whom you will be making the monthly mortgage payment.
Here Are The Top Six Questions To Ask:
1. Can you provide the name and telephone number of five local real estate agents with whom you have worked?
2. How long have you been in the mortgage banking industry?
3. How many current lenders do you work with?
4. Do you offer FHA (Federal Housing Administration) backed loans? You definitely want the option of an FHA loan so this is an important question to ask when vetting a potential mortgage broker.
5. What advantages do you offer over other mortgage brokers? While this will vary from one lender to the next, the answer should be along the lines of a trusted resource with your financial information and money.
6. What can you offer in terms of mortgage loan programs and interest rates?
Getting a mortgage isn’t something to take lightly especially when choosing a mortgage broker. Considering the amount of interest that you are going to pay over the lifetime of the loan, you deserve the right to be treated very special.
Tips from a Real Estate Professional
One tip that we commonly give is if you are buying a newly constructed home, you shouldn’t just go with the builder’s recommendation of a lender. Shop around and find an experienced expert that you have pre-vetted and have rapport to get the deal done.
Interviewing lenders is a great way to find the right one. But realize that you don’t have to start the mortgage application process with each. Shop around, find the one that you feel best suites your needs and then begin the application process.
Don’t forget that a mortgage broker is an independent contractor (just like your real estate agent). They don’t get paid until they close the deal. Also, please be aware that it is illegal for a real estate agent to receive any type of referral fee from a mortgage broker. So when a real estate agent gives you a referral, they are being honest as they get nothing from it aside from the satisfaction of you realizing your homeownership dream.
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