If you’re planning to get a mortgage, the very first thing you need to determine is whether to hire a mortgage broker or directly contact a mortgage lender. This is an important consideration because there are many different places where a buyer can secure a mortgage. You can get a home loan directly from lenders, banks or credit unions—known as mortgage lenders or direct lenders. While a mortgage broker act as a middleman between a borrower and mortgage lenders to secure the best type of mortgage and interest rates. This means a broker doesn’t lend you the money directly but can help you find the right mortgage loan, best rates, as well as do the legwork of getting it approved.
It is best to reach out to a mortgage broker because direct lenders simply provide their own mortgage products, while mortgage brokers can help you find the best one as they work with multiple lenders. So, to improve your chances of securing finance and selecting the right type of home loan, here are some useful tips for hiring an excellent mortgage broker.
Research Mortgage Brokers Online
It’s good to seek the recommendation of friends and family members but make sure to do some online research. Today, the internet has a huge impact on the real estate and mortgage industry so take advantage of it. The Internet is the best place for home buyers to search for mortgage brokers and analyze their level of expertise in the industry. You will not only find mortgage brokers in your area but can also check their online reviews on popular websites such as Google Business, Yelp, and Better Business Bureau to know what others have to say about their services. However, while searching a reliable mortgage broker; don’t make a mistake of believing that online mortgage calculators are 100% correct.
Know Lenders Products
Next, you need to determine what type of mortgage is best for your needs. This is important because different mortgage broker or lender will offer different types of mortgage products like some lenders do not deal in FHA home loans. Therefore, depending on your own personal mortgage needs, you need to find a broker who deals in your type of services.
Know About The Fees Charged
Often home buyers are not aware of the fees charged which may turn out to be a nag later. So, before you think of hiring a mortgage broker or choosing a lender, it’s best to familiarize yourself with common mortgage fees. There are many different costs of buying a home and most common mortgage fees are Appraisal Fee, Rate Lock Fee, Application Fee, Origination Fee, Processing Fee, and Underwriting Fee. So, make sure you understand all these and other related fees.
Ask As Many Questions As You Want
Once you find a licensed and certified mortgage broker, ask the professional right questions to understand his/her level of experience and knowledge in the industry. You should inquire about the present interest rates, types of mortgage product, the origination, and other fees involved, a breakdown of all closing costs, and the duration of processing a loan. A reliable broker will be confident to answer as many questions as you want.