Hire a Mortgage Broker for Best Results. But Hire the Right One!
By Sadiya Anjum
Shopping for a mortgage by your self can be an overwhelming experience especially if you are doing it for the first time. You have to analyze your situation, your funds, then go through the different kinds of loans, pick one out and compare lenders. Then there is the whole process of applying and then obtaining a loan! All of this would not be that tough if it was not for the wide variety of loans available and the thousands of lenders beckoning you to do business with them. You might as well call in the knight in shining armor – the mortgage broker!
A mortgage broker is someone who will act as an intermediary and direct you to the right loan as well as lender. Apart from this, he may even guide you through each step till you obtain a loan. Mortgage Brokers are freelance agents who generally charge a commission based on the loan obtained.
He will start with analyzing your financial situation and coming up with the best loan plan available for your needs. With his various connections with different lenders, he will find you the best plans available. The information provided to you will make your job so much easier. With limited options placed in front of you and with a little help from your broker, you will be able to judge which loan and lender to approach.
The sources of a mortgage broker run really deep. He will find you a loan that you may have never thought of and his connections will prove useful. He will also be familiar with the latest programs and trends in the market which may be alien to you. He will work with you till the loan closes and he is capable of finding a loan no matter what your credit history looks like.
A mortgage broker can also save you a load of money. He will be aware of the various hidden costs and fees which are not stated upfront. With access to wholesale mortgage rates, he may even be able to get you a discount. A good broker will look out for your interests and negotiate with lenders to find loans and special provisions that are favorable to you. He will make sure that your loan application process is handled properly and will help you get your hands on the funds as soon as possible.
But finding this good mortgage broker is essential. Just as every line of work has its inexperienced/ incapable workers or con artists, so does this industry. Hiring a really good broker is as good as almost obtaining a loan. Hire a broker who is licensed and is preferably from a reputed company. Ask for references and check to see how well he has performed his job in the past. Find out in the beginning about how much his services will cost you – fee/ commission/ bonus; and obtain a breakdown of the same.
Your broker should know his stuff and be approachable. He should satisfactorily answer all your questions and in turn asks relevant questions that will help him understand your situation and needs.
Even after you have hired your broker, remember to stay involved. Make sure that you understand the various processes that your application is being put through. Do not disclose interest rates or terms that you might be looking at in the beginning. Wait for him to come up with various options before you pick any out. Always read the fine print on documents and never sign any blank documents.
If you find the right mortgage broker then you may breathe a little easy. It is a small price to pay when you think of the results you will be obtaining. But the same price will be a complete waste and land you with an unfavorable mortgage if you do not hire a decent broker. If you do find a good one, you can be assured of finding the right loan from the right lender. Not to forget the whole process going a lot more smoothly!
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