When buying a new property, it is always worth hiring a mortgage broker to give you much-needed advice. They can help you find the best mortgages available, negotiate a great price for you, and help you to understand all the terms of the agreement. A good mortgage broker will also try to secure you the lowest cost at closing because they work with mortgage providers and often get paid commission rather than a set fee.
To help everyone out there make the right choice when securing these vital services, here are useful tips for hiring a mortgage broker.
1. Check the Broker’s References
It is always best to hire a mortgage broker before dealing with lenders because they really can improve your chances of securing favorable terms on your mortgage. To find the best broker, the first thing you will need to do is check their references. Get a list of the brokers in your local area and schedule a meeting through their website or phone. While you are waiting to meet them, you can check online reviews of other customers who have dealt with them previously. The folks at Hello Mortgage explain that you should look at how long it took the broker to secure the loan and how happy the customer was with the terms of their mortgage. Ideally, you should be looking at a conditional mortgage offer within three days, so if the broker has not been able to deliver that in the past, you may want to reconsider.
2. Check the Broker’s Portfolio
When looking at different brokers’ websites, you should be able to see their work portfolio. This can give you information about mortgage loans the broker has dealt with previously. There may also be information in the portfolio about the broker’s previous clients. If there are contact details, send them a message to ask them about their experiences and whether they would recommend the broker. You will also need to find out about foreclosures that were previously filed against your potential broker, as well as their credit rating and how long they have been in business.
3. Check their Mortgage Providers
Most mortgage brokers will work with a range of mortgage providers, some of which you will probably not be familiar with. Depending on the type of providers they work with, the broker may have a preference for a specific mortgage type. Therefore, if you want a specific type of mortgage loan, you should only be looking for brokers with experience in that type. Mortgage providers look at applicants differently when they are represented by a broker. They tend to give better terms on the loan, especially if they have a successful history and close working relationship with the broker. There are even some mortgage providers who will only accept applications for loans through a broker.
4. Discuss the Broker’s Rates
You will need to talk about the broker’s rates before agreeing to work with them. Most mortgage brokers are honest, but there may be people who are looking to pull a fast one on you. Only hire licensed mortgage brokers as they will have competitive rates and will be more trustworthy. Mortgage brokers will receive payments from the providers, so it is worth finding out how much commission they get. If it is about two percent, you may want to look for a different broker because they will be trying hard to sign you up for a loan, no matter whether it is the right one for you or not.
5. Ask the Broker the Right Questions
You need to prepare a list of questions to ask every broker that you are considering. This will ensure that you have all the information you need and that the broker knows exactly what you want. Make sure that you ask the brokers about their levels of expertise and their experience securing the type of mortgage you are looking for. A reputable mortgage broker will be forthright about whether they can provide the service you need. Double-check any mortgage provider they recommend and ask why they think you should go with that provider in particular. If it is only because that provider will pay them the best commission, then that may not be the best offer for you.
Choosing the right mortgage broker may seem like a difficult task, but as long as you do your research and ask the right questions, it can be fairly straightforward. Don’t let yourself be hard sold on any loan which isn’t right for you. Keep your requirements in mind and be very firm about not settling for something else. Follow these easy tips, and you will be able to secure the ideal broker to help you get the perfect mortgage loan.