Finding the Right Mortgage Broker: 9 Tips for Success
Did you know that over 11,000 companies give out mortgage loans in the U.S. alone? That makes finding the best deal almost like finding a needle in a haystack. But do you know how to find the best broker to do it for you?
A broker has lots of inside knowledge to get great deals, but they do also come with a number of pitfalls. Read on as we discuss how to find the best mortgage broker.
Speak to Friends and Family
The best form of advertising is word of mouth. Speak with friends and family when you are wondering how to find a Broker. They may be able to give you some great recommendations.
If they don’t have any, then resort to anyone you know who has bought a property recently. Even bad reviews are better than nothing at all, as they can tell you who to avoid.
Speak to a Real Estate Agent
A real estate agent will be worth every penny you pay at multiple stages of the buying process. They have access to a number of partners, from people who can help you do repairs to accountants and lawyers. If anyone will be able to recommend a great broker, it will be your agent.
The beauty of this method is that if you are wondering how to vet mortgage brokers, the real estate agent has already done it for you. They want you to get the best loan possible, to get the sale through, and get their commission. They will have used multiple people before and will have streamlined their operation to include the best recommendations.
Ask How They Are Paid
This may seem like a personal question, but it can tell you a lot about a mortgage broker. Usually, they are paid by the loan lenders to who they put you in contact. There are a number of laws that prevent them from adding hidden charges, so you can refuse these if they try to add them on, and you may want to consider going elsewhere.
Generally, people using the services of the broker pay a borrower compensation. This is because the broker will perform a lot of tasks other than just fixing you up with a loan. This is usually around 1-2% of the brokerage amount.
Interview a Number of Brokers
Don’t opt for the first broker that comes your way. Just like finding the right loan, you have to take time to find the right one. Different brokers will work with different lenders, and there may be certain ones you want to avoid. It’s always recommended to use a reputable broker like a Mortgage Broker Penrith (or one in your area) and to find them you can look online, read reviews, and get first-hand experiences from people who have used the broker before.
Don’t be afraid to interview each one you come across. Ask about the process, and discuss who they usually work with. Finally, check how much experience they have in the field and what their success rate is like.
Looking online is a great place to search for brokers. All you need to do is look up a mortgage broker near me and a whole host should appear. The beauty of this method is that they are often accompanied by honest reviews.
Many of them will be on industry websites and local search engines like Google My Business. These will all have ratings and comments from people who have used them before. Click here to find the best online.
Don’t write a broker off just because they have one or two bad reviews. Something may have gone wrong with that client that could not be rectified. Speak with the broker and ask them about the situation, giving them a chance to explain it.
Ask What Type of Loan Is Best For You
What to ask before hiring a mortgage broker is not as important as what to tell them. Once you have given them your situation and explained your finances, ask what loan is best for you. A poor broker will come straight back with a pre-arranged set of loans they use regularly, which is not want you want.
Instead, you want a broker to carefully consider your situation. If they go away and come back to you with a range of options that seem positive, then they have listened and done their homework.
Ask Who Is on Their Lending Panel
The panel of lenders is the loan institutions the broker works with. It is good to get a mix of both banks and non-bank lenders. You want someone with lots of options, but not so many that they don’t know the intricacies and current offers from each one.
It is important because there may be some lenders you know you don’t want to deal with. It could be that you also have a preference for certain types of lenders.
Ask What Information You Need
An organized mortgage broker should already have a checklist of documents and items you may need. This should be easy to understand and written in simple language. Some of this information may need advanced notice, so you should start collating it as early as possible.
Check Experience and Qualifications
Finally, check that the broker has relevant experience. See how many years they have been working in the business. They may be able to provide you with a history of former employment or even references.
Ask to see their qualifications. They may have relevant degrees, licenses, and certifications that show their professional standards.
Moving Forward With a Mortgage Broker
Now that you know how to find the perfect mortgage broker, it is time to move forward. Choose the best one, and get put in contact with your real estate agent. They should be able to work together to find you the best property and the best loan to buy it with.
If you enjoyed this article, then visit the rest of our blog. We have everything from real estate to home improvements, so let us help you find your dream home this coming year!