Besides finding the perfect house, one of the most crucial steps is knowing what to do when choosing a mortgage broker. Whether you are building your dream home or buying an existing home, there are a large number of financial products. Navigating these choices requires specific expertise.
In this article, we look at why a mortgage broker can help give your sound advice when choosing a loan. Not all mortgage brokers are the same. Read on to learn what to do and what questions to ask to find the best one for you!
What are some of the perks of working with a mortgage broker?
Before we start, let’s define a few terms. Independent of financial institutions, a mortgage broker acts as your agent to seek a lender. In other words, they carry out the mortgage shopping for you. They assist you in finding the best mortgage terms, rates, and conditions for your individual needs.
They will also help you to:
- Find the right mortgage option by assessing your financial goals and situation
- Seek and explain financing options at your disposal, such as home equity loans and debt consolidation
- Provide solutions for borrowers considered to have less than desirable credit
- Complete your loan application
- Offer counseling services
Once your loan gets approved, she/he reviews the loan documents before you sign, coordinates the property appraisal process, and acts as a mediator between you and the lender.
Rather than wasting a lot of time applying for several loans, the mortgage broker does the “shopping” for you to ensure that you get the best rates for your case. This can save you thousands of dollars over the life of the loan.
How do you choose the right mortgage broker?
1. Evaluate Various Brokers
When choosing a mortgage broker, you want to do your due diligence and gather as much information about them and their company. Do they seem credible? Do they have a social media presence? Have you heard about their services before? Have you seen them out in the community? Is their website active?
Also, make sure to find out if they are properly licensed. Request to see their credentials. More information is better than less.
2. Meet in Person
If you are interested in the services of a specific mortgage broker arrange for a meeting to discuss your concerns in person. That gives you a chance to ask many questions and get better answers than over the phone or via email.
Furthermore, having this meeting will allow you to rate their customer service skills. Which is key to having a smooth experience during the days leading up to a real estate closing. The mortgage broker you choose should answer all of your questions to your satisfaction and put you at ease. Don’t leave until you’ve asked every question on your list.
3. Check for References
Finally, another way to determine the quality of their services by speaking with people they’ve worked for in the past. So, ask the mortgage broker for references.
You can check online to gauge their reputation based on other people’s reviews. See what people are saying about them. By scanning the testimonials and online review sites, you get to discover more about them, their values, and if they will be your best choice for financing your new home.