Why Use A Mortgage Broker?
If you're thinking of purchasing a home, chances are that you'll need to get a mortgage. We all know that the mortgage process can be both overwhelming and complicated. So you have two basic choices -- deal with the banks lenders directly, or hire a mortgage broker who will assist you in getting the lowest interest rate mortgage and making the right choice. Mortgage brokers always make the process easier. Here's what you need to know about mortgage brokers and why you should get one.
Who is a mortgage broker?
- A mortgage broker bridges the gap between the banks and a homebuyer. Mortgage brokers are professionals with vast experience. Their job is to learn about the different array of mortgage products available and to determine which product best suits the clients' needs. Apart from that, they will also apply for the client’s mortgage pre-approval, gather up the required documentation, and fill out application forms required by the lender. Generally, the mortgage broker gets a referral fee by the lender.
Before going ahead with the procedure, the broker will carefully evaluate your requirements and weigh important decisions, such as lump-sum payments maximums, fixed versus variable rates, and potential break penalties. A mortgage broker will also help you navigate through the process of completing and submitting mortgage applications, and if the terminology seems complicated, your mortgage broker will explain relevant lender information and terms. They will also guide you in the steps required to close the mortgage transaction.
Consider these factors before hiring the right mortgage broker:
- Mortgage brokers should be licensed and must maintain a high level of professionalism.
- Mortgage brokers should be in the business full time. Be sure that they have chosen mortgage brokerage as their career and have demonstrated their long-term commitment to the role.
- To best meet a consumer's needs, mortgage brokers should have a wide array of products for their client’s to choose from – bank mortgages, credit union mortgages, independent lenders, and more. And, usually, the lender will only work with a mortgage broker after performing a background check on them. This includes proof of education, licensing and industry referrals from realtors, lawyers and appraisers.
- Notice how the mortgage broker interacts with you and their ability to answer your questions, your connection level with them, their mortgage rates, and their capability to close your mortgage on time. It's all about trust, reliability, and, ultimately, the association.
- Read their online reviews and assess if they are genuine.