Mortgage brokers are the professionals who look for the best mortgage for their clients by working and negotiating with various lenders. If you want to buy a house or refinance, a mortgage broker can help you find the right mortgage suited for your budget and situation.
Mortgage brokers will not only help you find the best deals, but they’ll also ensure that your loan is a perfect match for your lender. They are experts in determining whether a lender can work with their borrower.
Mortgage Broker vs. Loan Officer
Mortgage brokers help originate and close a loan between the borrower and lender. They are not the ones who will lend you the funds, unlike the lender.
Brokers have multiple lenders as partners, which include credit unions, commercial banks, mortgage companies, and other financial institutions. They can work with a brokerage firm or independently.
On the other hand, loan officers are professionals employed by banks, credit unions, or other lenders. Unfortunately, it limits their loan option offers. Since they can only use what their employers tell them.
Mortgages are the expertise of brokers. So loan officers may have limited information on the best mortgage for your needs.
How to Find a Good Mortgage Broker
Depending on where you are, you could have access to several or many brokers. So to narrow down your list, here are a few considerations you need to make.
The best place to start would be to ask locally. Local mortgage brokers would most likely have more knowledge of the local financial intuitions and loan options. And have more connections in the area where you want to buy your property.
If you are using one, you can ask your real estate to recommend a mortgage broker in your area. Or ask your friends and neighbors who hired a mortgage broker before. They can be a good source of referrals.
If you are a total stranger in your area and have no local contacts whatsoever, you can search online for a mortgage broker. There are many websites like https://altrua.ca/ that can provide you with a list of local brokers in your area.
There are also review sites like Yelp, which also lists local mortgage brokers. Along with comments and reviews made by previous customers.
Check Them Out
There is no doubt that there are shady or incompetent mortgage brokers out there. But some laws protect borrowers against them. For example, professional mortgage brokers have licenses. So that should be one of the first things you should ask before hiring one.
Check also if your broker can even work in your state. If you are in the US, you can determine your mortgage broker’s background with Consumer Access to determine if they have any past disciplinary actions.
You don’t have to look at one mortgage broker. If you are not comfortable with your first choice, try another.
Some of the questions you might want to ask are:
• Are you working with multiple lenders? How many?
• Do you have any clients with the exact mortgage needs as mine?
• How much do you think I can save if I choose a good mortgage?
• How much do you charge, and who pays it?
• What’s the process, and how long is it?
Even if you have your ideal mortgage broker in mind, try looking at other websites to determine if the interest rate of your broker is well within the competitive market.
A mortgage broker is a wise choice if you are unfamiliar with the mortgage industry. These professionals help you navigate the twist and turns of the mortgage process, ensuring you get the best deals and lowest interest rate. So if you know anyone who is a first-time homebuyer, recommending a mortgage broker to them will help.