Whether you are buying a new home, refinancing your current mortgage or just need to know how much you can afford, choosing the right mortgage broker is critical. Not only do they help you find a loan, but they also make sure the application process goes smoothly and that you end up with a good mortgage rate.
Getting the Best Mortgage for Your Needs
When it comes to buying a home, many people wonder if they should use a mortgage broker at all. This is a question that can be tough to answer because not all lenders work with brokers. In addition, a mortgage broker may not be the best way to go if youre looking for a specific type of mortgage.
The truth is that there are a lot of different options for financing a home, and the decision on whether or not you should use a mortgage broker will come down to your own personal preferences. The most important thing is that youre comfortable with your broker and feel they are able to communicate with you in a way thats best for you.
A great place to start is by asking friends and family for referrals. If they have used a broker in the past and were satisfied with their service, ask them for their name or email address.
This can give you a sense of their working style, how they communicate with clients and how easy it was for them to get a loan approved. It can also be a good idea to check with the Better Business Bureau for any complaints against a particular mortgage broker.
Besides a phone interview, you can also do a background check on the broker by visiting their website or reading a few customer reviews online. You can do this by using a site like WalletHub, Yelp, Google Reviews or other similar sites that list and review brokers in your area.
If you do decide to use a mortgage broker, its a good idea to find one who has experience. An experienced broker can help you navigate the mortgage lending process more easily, especially if you have a specific financial need or a complicated credit history.
The mortgage broker you select should be able to explain how the process works, what documentation is required and the length of time it will take to process the loan. They should also be able to answer questions about fees and costs.
You should also be prepared to discuss your credit score, debt load and other factors that can impact the interest rates youll be offered. If you have any financial issues or a poor credit history, its important to share those with your broker as early as possible so they can work with you to find a lender who will offer you the best rate and terms.
A good mortgage broker should be able to connect you with several different types of mortgage lenders. This will be especially helpful if youre looking for a low-down-payment option or want to purchase a home with an FHA mortgage. They should also be able to give you a rough estimate of how long it will take to close on your mortgage and what closing costs are likely to be.