Mortgage brokers are very familiar with the mortgage process, from the search for the highest interest rate and the lowest fees to the completion of the application and the timely conclusion of the loan. Working with a mortgage broker to find your way around today’s market could be a wise decision, especially for first-time buyers of homes. Let’s see how to find a good mortgage broker.
Where can I find a mortgage broker in my neighborhood?
If you are looking for a mortgage broker, your first instinct may be to search online, which is an important step. However, there are several additional ways to find brokers near you.
How do I find a mortgage broker?
- Ask friends and family for recommendations
- Learn everything about the broker’s services, the communication style, the level of knowledge and addressing customers.
- Your real estate agent.
- Check with your state’s professional registration authorities whether they have active mortgage broker licenses.
- Examine Internet reports
#1. Request recommendations from friends and family.
If you have a relative, friend or colleague who has just bought a property, find out if he has hired a mortgage broker. If so, inquire if you would suggest this broker and why. Did they manage to obtain a low-interest loan? How responsive was the broker during the application process? If the broker provided loans that met his financial requirements, such as down payment, creditworthiness and relationship between debt and income? Getting a basic sense of what the broker could achieve for them and what the client experience was like can help you find (or avoid) certain brokers.
#2. Talk to your real estate agent.
Local real estate agents probably know the financing scene and may have connections to california mortgage broker they can recommend. However, it is always a good idea to inquire about the agent’s relationship with the broker. You should know whether the agent has previously worked effectively with this broker. In this case, ask whether the agent or broker can give you references from previous customers.
#3. Perform an Internet search.
You can find brokers near you by performing a quick Google search. Note that not all brokers contain the word “broker” in their company name and some lenders also act as brokers. If you search online, you can filter out local companies, but before deciding whether you want to work with someone, be sure to ask for their business plan, if they are both a lender and broker, and their fee structure.
#4. Check the feedback.
Examine reviews on Google and other websites to find out what others have said about a broker (this is also a good idea for lenders). Consider whether they have offered acceptable financing options, brokerage fees and general customer service experience.
#5. Examine their qualifications.
You can check the licensing status of a broker by viewing it in the National Mortgage Licensing System & Registry (NMLS). You should also inquire whether a mortgage broker is a member of industry associations such as NAMB.
What you should ask a mortgage broker
Before proceeding with a mortgage broker, ask the following crucial questions:
- How much do you charge and who pays the bill?
- Which lenders do you use?
- How much is your experience?
- Are you entitled to do business in my state?
- Do you have any recommendations?
- How do you deal with rate barriers?
Working with a mortgage broker can save the borrower time and effort throughout the application process and thousands of dollars during the term of the loan. In addition, some lenders only work through mortgage brokers. This means that consumers have access to loans that would otherwise not be available to them. Brokers can convince lenders to waive application, valuation and brokerage fees, among other things.
When deciding to contact a mortgage broker, it is important to take all fees into account. It includes those you may have to pay to the broker, as well as any fees that the broker may be able to help you avoid them.