When looking to purchase or refinance a home, finding the ideal mortgage broker is essential. These professionals will save you time, money and hassle by researching all available loan options. Furthermore, they provide guidance throughout every step of the loan process.
Finding the Right Mortgage Broker for Your Needs
When searching for a mortgage broker, start by asking friends and family about their experiences working with a lender or broker. Make sure to ask specific questions about professionalism, customer service and overall experience. They may be able to give recommendations on which brokers they have previously used so that you can find someone who makes your home buying process simpler and less stressful.
Interviewing Potential Mortgage Brokers
You may want to consult real estate agents who work with the broker you’re considering. These professionals often have a financial stake in the success of your home purchase, so they may suggest the ideal broker for your requirements.
A qualified mortgage broker should be able to assess your financial situation and explain the various loan programs available. They’ll take time to review your credit score, income, debts and other factors that could impact how much you can afford.
A mortgage broker will guide you through the application and approval process with you. They also have access to loan offers from various lenders, such as banks and credit unions.
Your broker is also accountable for arranging an appraisal on your home, sending paperwork to the underwriter and setting a closing date. Once everything has been approved, they’ll create all necessary closing documents and send them directly to the lender in order to close the loan.
If you’re a first-time homeowner, it is recommended that you consult with a mortgage broker with expertise in this area. Doing so will give you an inside view on how the process works and help avoid common errors that can make getting a loan more challenging or impossible.
Before selecting a mortgage broker, be sure to check with your local Better Business Bureau to see if there have been any complaints filed against them. Doing this can give you insight into whether the broker has an established history of being honest and upfront about fees or other matters relevant to your particular loan.
Do I Need to Pay the Mortgage Broker?
Mortgage brokers may or may not be paid by borrowers, though many are compensated by lenders. Their fee is typically 1%-2% of the loan amount and serves as their origination fee.
Are the mortgage broker licensed in my state?
A mortgage broker acts in your best interest and must be licensed by your jurisdiction. To do this, they must be a member of the Nationwide Multistate Licensing System and registered on your state’s Consumer Access website.