When shopping for a house, you need the services of a professional mortgage broker. It is possible to approach banks and lenders alone but it makes sense to hire a mortgage broker. Finding the right type of finance deal and interest rate is one of the most important steps to buying a house. Some first time home buyers can’t figure out the difference between a mortgage broker and a lender. This confusion often results in finalizing a deal that might not be in their best favor.
A mortgage broker acts as a middleman between a potential borrower and mortgage lenders. Mortgage agents perform all the legwork on behalf of their clients to secure the best loan option. A mortgage lender, on the other hand, is the financial institution or bank that provides the funding for the purchase of the real estate.
It’s crucial to hire a mortgage broker but there are tons of brokers out there- a few great agents, some average while others are terrible. So, how do you find the right broker? Similar to any other industry professional, mortgage brokers are also required to meet certain standards. Here we’ve listed some key features to look for in a good broker. Check out the following tips for choosing an excellent mortgage professional to avail the best mortgage deal.
Qualified & Licensed
The professionals offering this service should be licensed and regulated. To obtain a state license, mortgage agents need to obtain a Certificate in Mortgage Advice and Practice. The best brokers are not only qualified but also undertake regular training and exams to ensure they are compliant. Only a qualified and experienced mortgage broker can advise you about the most suitable loan products and find a perfect solution to finance your real estate needs.
Some mortgage agents have a partnership with wholesale mortgage lenders. You should avoid hiring these agents because they offer products of their partner lenders only. It is recommended to work with an independent mortgage broker to get access to a wide range of products. Independent brokers work with multiple mortgage lenders to offer you an extensive selection of loan options. This helps in comparing different loan options and select the one the suits your requirements.
The broker you hire should be honest to give you a clear idea of the service charges. Some mortgage brokers offer free advice and take a commission from the lender. While some broker charges a huge amount in the name of an arrangement fee. So, before you make a final decision, make sure to ask about broker fees. You should always check that there’s no hidden fee. It’s best to research about different terms related to mortgage charges such as Application Fee, Origination Fee, Processing Fee, and Underwriting Fee.
An experienced mortgage broker is responsive. He/she can quickly and clearly respond to your inquiries. When choosing a broker, ask your potential agent as many questions as you want. You should ask about the current interest rate, origination, and other related fees, different loan options, type of documents needed, and more such questions. A prompt and satisfactory response to these questions will help you make the right decision.