What to look for in a mortgage broker
When shopping for a mortgage, you can apply for a loan directly from a wide variety of lenders. The other option you can choose is to use a mortgage broker. The difference between the two is that a mortgage broker will do most of the legwork and research for you, and can shop for many different loans all at one time, ensuring you receive the best mortgage rate and the best loan program possible. There are, however, many things to consider when looking for a mortgage broker. First and foremost, they should not charge you any fees upfront. Their fees are usually included in the final closing costs of the loan, which are not paid until you actually close on the home. Another sign of a good mortgage broker is one who will go over all the terminology included in the home loan application process to you ahead of time, so you are aware of what everything means before signing on the dotted line.
The world of mortgages can be confusing and overwhelming at times, so a good mortgage company
or broker will help guide you through the maze. Perhaps one of the most important characteristics of a good mortgage lender
is one who is available when you need them. If you have important questions, your broker should be reachable by phone or email, or both, and should be able to respond to you in a timely fashion. When looking for a mortgage, time is valuable and you cannot afford to wait for responses when you have questions, so find a broker who is easily accessible.
Another important trait of a good mortgage broker is one who is more than willing to run over the numbers with you several times until you understand them. In addition, he or she should be able to show you the differences between all loan options, and be able to explain the positives and negatives of each so that you can make an informed decision. They should have a standing relationship with a great deal of lenders so that you have as many options as possible when you decide to apply for a mortgage. In addition, they should be knowledgeable and know what you mean when you ask them a question. They should be able to explain all of the terms and conditions to you, as well as be able to explain why certain documents are needed. In addition, mortgage brokers should not promise more than they can actually deliver.
For example, if you have a high debt to income ratio and low credit scores, they should be honest with you upfront and inform you of your choices to avoid disappointment later. In addition, they should be very personable and easy to speak to so that you feel completely comfortable calling their office or asking questions on just about any subject. Their goal is to be sure they secure you a mortgage so you should both be on the same page at all times. All of these qualities make the extra work brokers do totally worth it to you by ensuring you get the home loan that will best suit your needs.