How a Mortgage Broker Can Help You Get a Mortgage
A mortgage broker works as an intermediary between you and a lender to help you get a mortgage. They help you shop for the best rate and loan terms, and they also provide insights into the local housing market and the types of loans that might fit your needs.
Mortgage brokers can be helpful when you’re trying to find a home or refinance your existing mortgage, but they aren’t required for all loans. You can still apply directly with lenders, if you wish.
The best way to find a broker is by asking friends, family members and real estate agents for referrals. Ask about their experiences with the broker, including how long it took them to find and close on a loan.
You can also check online reviews and ratings for any potential brokers. This is a great way to determine if they’re reliable and trustworthy, if they communicate well, if they are responsive to your needs and if they’re able to meet deadlines.
Your goals and your financial situation should be a priority for you, but it’s important to know that not every borrower is going to qualify for the best rates or mortgage options. If your credit is less than stellar, if you have a lot of debt or if you’re unemployed, your lender will be more likely to turn down your application and offer you subpar mortgage rates.
If you have a low credit score, it may be better to work with a lender who offers conventional loans instead of an FHA- or VA-backed loan. These loans often have lower interest rates and fees, so they may be more affordable.
A mortgage broker has relationships with many lenders and can offer you a range of loan options. They’ll do the hard work of comparing various mortgage options and finding the best loan for you, as well as offering advice on homebuying strategies and helping you prepare financial documents for your application.
They can save you time by shopping for you and reducing the number of lenders you need to contact. They can also make sure you don’t pay any fees that you might not be aware of when you go through the lending process on your own.
Mortgage brokers have intimate knowledge of the fees that lenders charge, including application fees, underwriting fees, appraisal fees, and credit checks. They can often ask lenders to waive these fees if they’re not already on your loan offer, saving you money.
Some mortgage brokers earn a commission from the lenders they refer you to, but this isn’t always the case. If a broker recommends a lender that pays them a higher commission, it might be a conflict of interest.
A good broker will have a fiduciary responsibility to find the best loan for you, regardless of their profit margins. They’ll try to steer you away from lenders who have higher fees or who offer loans with more onerous terms, so you can be sure that they’re recommending you a loan that meets your needs and fits your budget.