If you need to get a mortgage loan, you may either go directly to your bank or use a mortgage company or online lender. However, approaching a single lender means missing out on better deals. Even if you consult multiple lending institutions, it can be hard to search and compare rates and terms of different lenders on your own. That’s why wise homebuyers use the services of a mortgage broker.
Mortgage brokers serve as liaisons between borrowers and lenders. Having a good mortgage broker by your side means you get access to the best available loan deals. Also, the broker you hire will gather all your documentation and paperwork to make the whole process easier for you. The best brokers guide their clients through the qualification and loan approval process besides finding the right loan product. Your broker will evaluate your credit score and review of your income and other important financial documents to determine which types of loans are best suited for you.
Hiring a mortgage broker is important but finding the right professional is equally important. With the increasing demand for mortgages, hundreds of mortgage brokers have entered the industry. This has made it difficult to identify a qualified and reliable broker from hundreds of inexperienced ones. With that in mind, below we’ve listed some tips to pick the right mortgage broker. By considering the following factors, you can easily make the right hiring decision.
Qualifications and Credentials
To work as a mortgage broker, an individual needs to get a working license. Only qualified and licensed professionals are authorized to provide credit advice. So, check the license, qualifications, training certificates of the broker before hiring. These documents ensure that the individual has completed an education course and training to offer these services. The best brokers are also members of mortgage associations.
Examine their Lender Panel
It’s recommended to work with an independent broker because they have wide market coverage. You should look for a broker who has access to a lender panel comprising of both conventional sources like banks and credit unions as well as non-conventional sources such as private lenders. This will help you in getting the best rate and terms available. Avoid brokers who have limited market penetration.
Get References and Reviews
The broker should have a good reputation and credibility in the industry. It’s best to make a list of potential mortgage brokers based on references from friends and colleagues. Now research about each broker by reading their online reviews, testimonials, and also check accreditations. If you’re satisfied with the online research, speak the broker directly and ask for references. The mortgage broker you’re considering must be open about furnishing all details and information.
Services Offered & Cost
The reliable mortgage brokers are always open and honest about discussing their fees and the commissions they may receive from lenders. You should ask about their fees and what services are offered at that cost. The ideal broker will not only find the lowest mortgage rate and best terms but also provide other useful services. The broker you hire should ideally facilitate the whole process to help you secure the best loan in a hassle-free manner.