Buying a new house is a tedious process. Of course, picking a place is one thing, but then the actual legal process is one that’s tough to traverse. If you’re a bit unclear on the process, it helps to know what to look for before heading into the home buying market. Of course, you’ll want to be ready for all the different people that can help you close on a house in a quick and economically savvy fashion, and one person who helps with this is a mortgage broker. Let’s talk about why mortgage brokers are essential to the home buying process and discuss how you can find the best one for you.
Questions to Ask a Your Mortgage Broker
When hiring a mortgage broker, be sure to keep these things in mind. First, let’s briefly define what a mortgage broker is. Mortgage brokers help mediate between buyers and mortgage lenders. They can be a great asset but be sure to ask these things before settling on.
Find Out About Fees Right Away
Brokers all decide and set their fees based on their affiliation. For example, independent brokers are going to have different fees than brokers working for a firm. It’s also important to find out about any origination fee. This fee is a percentage, usually around 1%, that they get as payment for connecting you to your home loan. Ask about these fees right away so you know what you’re working with financially. Always stay in your budget and know that if one broker doesn’t fit your economic situation, others might be able to get closer.
Find Out Your Mortgage Chances
If you’re a first-time homeowner, or maybe have a history of lukewarm credit, you might be wondering where you stand on the mortgage market. Well, any good broker should help you to know exactly how you look to lenders, and if they seem to keep this to themselves, that doesn’t do you any good. Even if you might be looking at a loan with a bit of a higher interest rate, you need to know. Don’t hire someone who isn’t going to send you into the process with a total understanding of what offers you will receive.
Speak to Former Clients
Any good broker will be happy to share with you a testimonial or two. Better yet, talk to someone who has worked with the broker themselves! If they seem hesitant, it might be because clients haven’t offered up their names or thoughts, but many great brokers keep these things handy to attract new business.